Report on ‘Operation Shady RAT’ identifies widespread cyber-spying

By Ellen Nakashima, Published: August 2 | Updated: Wednesday, August 3, 7:00 AM

http://www.washingtonpost.com/national/national-security/report-identifies-widespread-cyber-spying/2011/07/29/gIQAoTUmqI_print.html

A leading computer security firm has used logs produced by a single server to 
trace the hacking of more than 70 corporations and government organizations 
over many months, and experts familiar with the analysis say the snooping 
probably originated in China.

Among the targets were the Hong Kong and New York offices of the Associated 
Press, where unsuspecting reporters working on China issues clicked on infected 
links in e-mail, the experts said.

Other targets included the networks of the International Olympic Committee, the 
United Nations secretariat, a U.S. Energy Department lab, and a dozen U.S. 
defense firms, according to a report released Wednesday by McAfee, a security 
firm that monitors network intrusions around the world.

McAfee said hundreds of other servers have been used by the same adversary, 
which the company did not identify.

But James A. Lewis, a cybersecurity expert at the Center for Strategic and 
International Studies, said “the most likely candidate is China.” The target 
list’s emphasis on Taiwan and on Olympic organizations in the run-up to the 
Beijing Games in 2008 “points to China” as the perpetrator, he said. “This 
isn’t the first we’ve seen. This has been going on from China since at least 
1998.”

Another computer expert with knowledge of the study, who spoke on the condition 
of anonymity out of reluctance to blame China publicly, said the intrusions 
appear to have originated in China. McAfee dubbed the intrusions “Operation 
Shady RAT,” with the acronym standing for “remote access tool.”

The intruders were after data on sensitive U.S. military systems, the McAfee 
report says, as well as material from satellite communications, electronics, 
natural gas companies and even bid data from a Florida real estate company. 
Forty-nine of the 72 compromised organizations were in the United States.

“We’re facing a massive transfer of wealth in the form of intellectual property 
that is unprecedented in history,” said Dmitri  Alperovitch, McAfee’s vice 
president of threat research. He would not name the private entities targeted, 
but said McAfee helped half a dozen of them investigate intrusions.

Some of the intrusions — such as one into the World Anti-Doping Agency in 
Montreal — are continuing, he said. Spokesmen for that organization and for the 
International Olympic Committee said they were not aware of the intrusions. A 
U.N. spokesman said technicians analyzing the logs have not seen evidence of 
stolen data. The Energy Department had no comment.

According to the report, which does not identify the AP by name, the 
organization’s New York office was targeted in August 2009 in an intrusion that 
lasted, on and off, for eight months. Its Hong Kong bureau was penetrated at 
the same time, in an intrusion that continued for 21 months.

AP spokesman Jack Stokes said the company was aware of the report. “We do not 
comment on network security,” he said.

The Associated Press has been targeted before. A March 2009 report by Canadian 
researchers about allegations of Chinese espionage against the Tibetan 
community found that computer systems in AP offices in Hong Kong and Britain 
had been compromised.

McAfee had been aware for years of a “command and control” server located in a 
Western country that was used to control malware deployed on target computers. 
But the firm just recently discovered that the hackers had made a tradecraft 
mistake, configuring the server to generate logs that identified every Internet 
protocol address the server had controlled since 2006.

Google’s disclosure early last year that hackers in China had broken into its 
networks and stolen valuable source code was a watershed moment: A major U.S. 
company volunteered that it had been hacked. Google also said that more than 20 
other large companies were similarly targeted.

Scott Borg, chief economist at the U.S. Cyber Consequences Unit, a research 
group, has assessed the annual loss of intellectual property and investment 
opportunities across all industries at $6 billion to $20 billion, with a big 
part owing to oil industry losses. These firms spend hundreds of millions of 
dollars to explore oil fields before bidding on them, Borg said.

One measure of pain came recently when EMC Corp. disclosed that it had taken a 
$66 million charge to cover remediation costs associated with a March intrusion 
of its RSA division. That intrusion, which industry experts say appeared to 
have originated in China, resulted in the compromise of RSA’s SecurID computer 
tokens that companies and governments worldwide use to log on remotely to 
workplace systems.

As a result of the compromise, at least a dozen major financial institutions 
are switching to other vendors, said Gary McGraw, chief technology officer at 
Cigital, a security firm that works with banks. Stina Ehrensvard, chief 
executive of YubiKey in Palo Alto, Calif., said at least 25 firms have switched 
to YubiKey or are testing its token as a result of the RSA breach.


Staff researcher Julie Tate contributed to this report.


© The Washington Post Company
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