-Caveat Lector-

From:

http://www.the-times.co.uk/news/pages/Times/frontpage.html?1124027

The Times of London
July 25 1999
UNITED STATES

<Picture>�

Cyber assault: Clinton wants an extra $600m to combat threats
such as Moonlight Maze

Photograph: Ron Edmonds


Russian hackers steal US weapons secrets

by Matthew Campbell
Washington

AMERICAN officials believe Russia may have stolen some of the
nation's most sensitive military secrets, including weapons
guidance systems and naval intelligence codes, in a concerted
espionage offensive that investigators have called operation
Moonlight Maze.

The intelligence heist, that could cause damage to America in
excess of that caused by Chinese espionage in nuclear
laboratories, involved computer hacking over the past six months.

This was so sophisticated and well co-ordinated that security
experts trying to build ramparts against further incursions
believe America may be losing the world's first "cyber war".

Investigators suspect Russia is behind the series of "hits"
against American computer systems since January. In one case, a
technician trying to track a computer intruder watched in
amazement as a secret document from a naval facility was
"hijacked" to Moscow from under his nose.

American experts have long warned of a "digital Pearl Harbor" in
which an enemy exploits America's reliance on computer technology
to steal secrets or spread chaos as effectively as any attack
using missiles and bombs.

In a secret briefing on Moonlight Maze, John Hamre, the deputy
defence secretary, told a congressional committee: "We are in the
middle of a cyber war."

Besides military computer systems, private research and
development institutes have been plundered in the same operation.
Such institutes are reluctant to discuss losses, which experts
claim may amount to hundreds of millions of dollars.

"We're no longer dealing with a world of disgruntled teenagers,"
said a White House official, referring to previous cases of
computer hacking in which pranksters have been found responsible
for incursions. "It is impossible to overstate the seriousness of
this problem. The president is very concerned about it."

The offensive began early this year, when a startling new method
of hacking into American computer systems was detected. A
military computer server near San Antonio, Texas, was "probed"
for several days by hackers who had entered the system through an
overseas site on the internet.

Dozens of infiltrations ensued at other military facilities and
even at the Pentagon in Washington. When research laboratories
also reported incursions using the internet technique, officials
realised that a "cyber invasion" was under way.

"There were deliberate and highly co-ordinated attacks occurring
in our defence department systems that appeared to be coming from
one country," said Curt Weldon, chairman of a congressional
committee for military research and development. "Such a thing
has never happened before. It's very real and very alarming."

Even top secret military installations whose expertise is
intelligence security have been breached. At the Space and Naval
Warfare Systems Command (Spawar), a unit in San Diego,
California, that specialises in safeguarding naval intelligence
codes, Ron Broersma, an engineer, was alerted to the problem when
a computer print job took an unusually long time.

To his amazement, monitoring tools showed that the file had been
removed from the printing queue and transmitted to an internet
server in Moscow before being sent back to San Diego. "It turned
out to be a real tough problem for us," he told a private
computer seminar last month.

It is not clear precisely what information was contained in the
stolen document. Beyond its role in naval intelligence, Spawar is
also responsible for providing electronic security systems for
the Marine Corps and federal agencies. It is suspected that
several other intrusions had gone undetected.

Oleg Kalugin, a former head of Soviet counterintelligence now
resident in Maryland, said such facilities were prime targets for
Russian intelligence. He said the Federal Agency for Government
Communications and Information, a former KGB unit that
specialises in electronic eavesdropping, was certain to be
exploiting the internet for spying on America. "That's what
they're good at," he said.

America's high-precision technologies, including weapons guidance
systems, are of particular interest to a country such as Russia
where economic woes have prompted crippling cutbacks in funding
for military research. "Russia is quite good at producing
technology but can't afford to finance the research," said
Kalugin. "It's easier to steal it."

The computer assaults have given fresh impetus to measures
ordered by Clinton more than a year ago to protect the country's
electronic infrastructure. Alerted to the threat of Moonlight
Maze, the president has called for an extra $600m to help fund a
variety of initiatives, including an infrastructure protection
centre in the FBI to gauge the vulnerability of computer systems
to attack.

He has ordered the military to develop its own information
warfare capabilities to respond to such attacks. But Weldon,
describing dependence on computer systems as "the Achilles heel
of developed nations", said this is not enough. He is advocating
the creation of a unit in the Pentagon under a senior commander
to oversee the defence of computer systems.

According to other experts, America has been so preoccupied with
beating the Y2K (year 2000) or millennium bug - a programming
problem that could paralyse computers on the first stroke of the
new year - that its military, scientific and commercial
communities have neglected the overall security of their computer
systems.

At the same time, the huge number of systems being overhauled to
make them Y2K-compliant has heightened the risk of infiltration.

Alarmed by the theft of military documents whisked to Russia,
American officials argue that the country should brace itself for
other, equally disturbing forms of information warfare that, in
theory, could bring the country to its knees.

China, Libya and Iraq are developing information warfare
capabilities and, according to one White House official, "we see
well-funded terrorist groups that also have such capabilities".

A series of war games conducted by experts last year revealed
that the world's greatest superpower could be at the mercy of a
handful of determined computer hackers paralysing airports,
markets and military systems with a few taps on a computer
laptop.

Suspicions that Russia is responsible are based partly on the
involvement of Moscow-based internet servers in some attacks. But
experts caution that evidence of a Russian hand in the operation
may not signal a Kremlin connection.

"It could turn out to be Russian organised crime," said one
expert. "And they could be acting as a front for the intelligence
community."

Ironically, the Russians are pressing for an international treaty
to freeze information warfare. "We cannot permit the emergence of
a fundamentally new area of international confrontation," Sergei
Ivanov, the former Russian foreign minister, wrote in a letter to
Kofi Annan, the United Nations secretary-general in October.

Subsequently, Russia's relations with America have reached their
lowest ebb since the cold war because of Nato's intervention in
Yugoslavia. Relations with China have also suffered. An offensive
in cyberspace may be their one way of retaliating without getting
into a shooting war.

Copyright 1999 Times Newspapers Ltd.


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