NIPC Daily Report 10 June, 2002

The NIPC Watch and Warning Unit compiles this report to inform recipients of
issues impacting the integrity and capability of the nation's critical
infrastructures.

Who protects the nation's infrastructure?  Regardless of how the next major
terrorist attack may come, what worries US security strategists is the
economic shock that could result from an attack on a "critical
infrastructure," such as a transportation, telecommunication or an energy
facility. By striking such targets, which military experts regard as highly
vulnerable, an enemy could inflict far more economic damage than the attack
on the World Trade Center.  Who should pay the huge costs of protecting such
facilities? Should the government order the private sector to provide backup
capacity to cushion the shock to the rest of the country if disaster
strikes? That's an especially knotty dilemma considering corporate America
has spent much of the last decade eliminating extraneous cost and capacity
at the same time federal and state governments are faced with severe budget
squeezes. The current position of the Bush Administration is to leave these
issues to the private sector and prod them to boost security through various
kinds of market incentives. Should a major terrorist attack hit vital
infrastructure, however, the debate over the roles of the private and public
sectors would be joined quickly.  ( Business Week Online, 7 June)

Terror fears spark Asian port checks. The threat of a terrorist bomb loaded
from ship container to truck then exploding in the heart of an American city
is driving moves by US Customs officials to inspect containers in Asian
ports.  Washington does not expect to be able to inspect all US-bound
containers, but to work with 20 "mega-ports" to better target which
containers need inspection.  US Customs officials said they have developed
an automated system to weed out suspicious packages that deserve a closer
look using background of shippers and other tools to identify suspicious
cargo.  (CNN.com, 6 June)

EPA awards first water security grants. US Environmental Protection Agency
(EPA) Administrator Christie Whitman announced the first round of water
security grants, part of $53 million to help large drinking water utilities
across the nation assess their vulnerabilities.  EPA also will work with
states, tribes and appropriate organizations to further develop and
disseminate tools and support security efforts at small and medium drinking
water and wastewater systems.  EPA worked with Sandia National Labs to
develop training materials for water companies so they can conduct thorough
assessments of vulnerabilities and determine how best to minimize said
vulnerabilities. (Watertech Online, 7 June)

Plants told to assess safety.  The US Environmental Protection Agency (EPA)
plans to order thousands of chemical plants, refineries, sewer and water
treatment facilities to assess and reduce their vulnerability to terrorist
attack. The plan, under review by several federal agencies, is patterned
after measures developed by the chemical industry and would require analyses
of plant security and consideration of safer chemical processes. While the
chemistry council's plan affects only its members, the federal requirement
would involve about 15,000 plants, the EPA official said.  The plan would
affect about 35 sites in Contra Costa County, which has one of the highest
concentrations of chemical and petroleum plants on the West Coast. About
half of those plants are near enough to population centers to make them
attractive terrorist targets. (Contra Costa Times, 8 June)

Air marshals train to tackle terrorism. "It's clear in my mind, when I weigh
all of the pros and cons, pilots should not have firearms in the cockpit,"
Transportation Security Administration Director John Magaw told the Senate
Commerce Committee on 21 May. "If something does happen on that plane, they
really need to be in control of that aircraft, whether it's getting it on
the ground, [or] whether it's maneuvering it so it knocks people off balance
that are causing the problem."  One shortcoming of the Air Marshall program
is their small numbers.  Growing from fewer than 50 before 11 September to a
reported 2,000 (the Transportation Department maintains that the actual
number is classified), they still sit on just a fraction of the nation's
35,000 daily flights. But air marshal officials contend that their numbers
are much higher than most people think, and while they aren't on board every
flight, the threat of their presence is a deterrent.   The Air Line Pilots
Association, which supports arming pilots, notes that armed pilots can do
one thing that air marshals cannot: defend the aircraft from inside the
cockpit. (GovExec.com, 4 June)

Homeland security plan on technology. Homeland Security Department would
take over "key cyber security activities" performed by the Department of
Commerce's Critical Infrastructure Assurance Office (CIAO) and the FBI 's
National Infrastructure Protection Center (NIPC). It would coordinate with
the General Services Administration's Federal Computer Incident Response
Center and assume the functions and assets of the Defense Department's
National Communications System to coordinate emergency preparedness for the
telecommunications sector. President Bush's plan hints that there will be
some information technology shuffling. The plan does call for "development
of a single enterprise architecture" designed to eliminate "sub-optimized,
duplicative and poorly coordinated" systems.  "There would be rational
prioritization of projects necessary to fund homeland security missions
based on an overall assessment of requirements rather than a tendency to
fund all good ideas beneficial to a separate unit's individual needs" the
plan states.  (CNET News, 7 June)

Cyberspace seen as a 'great threat and great danger'.  US Space Command
expects an increase this year in the number of attempts by hackers to break
into Defense Department computer networks, according to Lt. Gen. Ed
Anderson, Deputy Commander in Chief.  One of the command's responsibilities
is to meet all of the department's current and future cyber threats and
requirements, and Anderson said the importance of the task couldn't be
overemphasized.  "As a matter of fact," he said on 5 June at a Chamber of
Commerce luncheon, "I will tell you that if there's anything that keeps me
awake at night, more than the other things we address, it's cyberspace. That
truly is an area of great threat and great danger."  From 1998 to 1999, he
said, "there was a five-fold increase in the number of events that we
detected in terms of hackers trying to get into our unclassified" networks.
Since then, "there has been a steady increase in the number of events that
have been detected ... and I can assure you that the number for 2002 will be
greater than the number for 2001". Last year, Anderson said, "close to
30,000 events were detected, and we expect over 40,000 events this year."
(Aerospace Daily , 7 June)

Al-Qai'da uses Web as communications network.  One day last October, an
intelligence-community analyst noticed something strange about a radical
Islamic Web site she had been monitoring for several months. A previously
open, innocuous part of the site was suddenly blocked. She checked her
notes, found the old address for the link and typed it in-to find an
otherwise empty page commanding in Arabic, MISSIONARIES ATTACK!  Other
"hidden" pages on the site included seemingly nonsensical phrases and
quotations from the Qur'an-coded instructions for Al-Qai'da operatives and
their supporters. U.S. intelligence discovered Al-Qai'da uses the Web as a
communications network. Analysts believe Al-Qai'da uses prearranged phrases
and symbols to direct its agents. An icon of an AK-47 can appear next to a
photo of Osama bin Laden facing one direction one day and facing another
direction the next. Colors of icons can change as well. Messages can be
hidden on pages inside sites with no links to them, or placed openly in chat
rooms. The messages and patterns of symbols are given to analysts at the CIA
and National Security Agency to decipher.  ( Newsweek, 7 June)

Monkeypox could be used as bio-weapon. According to scientists and former UN
weapons inspectors, the Russians worked with the monkeypox virus, a close
cousin to smallpox, in their bioweapons program and it is possible
terrorists could use it in a biological attack against the US. Monkeypox is
not as contagious as smallpox, but whether it could be or has been modified
to be more virulent is unknown. The CDC, which holds a stockpile of the
smallpox vaccine, is currently reconsidering its vaccination strategy and
whether to vaccinate everyone or wait until there is an outbreak and try to
vaccinate only those exposed. There are concerns that Russia's smallpox may
have been leaked to terrorists, and whether something similar happened with
monkeypox is uncertain.  Iraq is one of the rogue states that may have
obtained access to monkeypox. UN weapons inspectors have not been in Iraq
since 1998, therefore it is difficult to know for certain whether they ever
worked with monkeypox. The good news is that monkeypox does not appear to be
transmittable from person to person and the smallpox vaccine protects
against it.  (United Press International, 9 June)

Gunn says he's optimistic Amtrak will avoid shutdown.  Amtrak President and
CEO David L. Gunn said he is optimistic that the railroad could land a $205
million loan and avert a shutdown in July.  But he made it clear that any
shutdown would involve the entire system, not just certain routes such as
long-distance trains. Gunn told employees that the railroad would run out of
cash by July if it could not obtain a loan to tide the railroad over to the
beginning of the fiscal year in October. If Amtrak shuts down, the effects
would extend far beyond the lack of inter-city rail transportation.  Amtrak
maintains and dispatches trains along the Northeast Corridor, which is used
by thousands of commuters daily to travel between cities reaching from
Washington, D.C. to Boston. Any shutdown plan would have to address a
transition that would allow commuter operations to continue. Most observers
do not expect Amtrak will be forced to shut down.  (Washington Post, 9 June)

WWU Comment: While the risk of shutdown exists as early as July, skeptics
claim that Amtrak will be bailed out by Congress or at least be given
financial support to carry them through the end of the FY.  If not,
privatization is a possibility.

Feds seek better Microsoft security.  Tired of security holes in Microsoft's
products, government technology officials are discussing whether to use
their collective purchasing power to force changes in the way the Microsoft
does business.  Their efforts received a boost when consumer activist Ralph
Nader joined the cause.  In a letter to the White House, Nader indicated
that changes in purchasing policy might be more effective and palatable to
the administration than antitrust sanctions. The letter suggests the
government should place limits on the number of Microsoft products it buys,
dividing federal money among Microsoft, Apple, IBM and other companies. It
also suggests that the government could push Microsoft to make changes. Many
of the changes, such as more technical disclosure and making its products
available on competing operating systems, mirror those suggested during the
antitrust case and championed by the nine states still suing Microsoft.
(Associated Press, 9 June)




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