(c/o MM)

The Full Story of the Stunning RSA Hack Can Finally Be Told
In 2011, Chinese spies stole the crown jewels of cybersecurity—stripping 
protections from firms and government agencies worldwide. Here’s how it 
happened.

ANDY GREENBERG

05.20.2021 06:00 AM

https://www.wired.com/story/the-full-story-of-the-stunning-rsa-hack-can-finally-be-told/

 
AMID ALL THE sleepless hours that Todd Leetham spent hunting ghosts inside his 
company’s network in early 2011, the experience that sticks with him most 
vividly all these years later is the moment he caught up with them. Or almost 
did.

It was a spring evening, he says, three days—maybe four, time had become a 
blur—after he had first begun tracking the hackers who were rummaging through 
the computer systems of RSA, the corporate security giant where he worked. 
Leetham—a bald, bearded, and curmudgeonly analyst one coworker described to me 
as a “carbon-based hacker-finding machine”—had been glued to his laptop along 
with the rest of the company’s incident response team, assembled around the 
company’s glass-encased operations center in a nonstop, 24-hours-a-day hunt. 
And with a growing sense of dread, Leetham had finally traced the intruders’ 
footprints to their final targets: the secret keys known as “seeds,” a 
collection of numbers that represented a foundational layer of the security 
promises RSA made to its customers, including tens of millions of users in 
government and military agencies, defense contractors, banks, and countless 
corporations around the world.

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RSA kept those seeds on a single, well-protected server, which the company 
called the “seed warehouse.” They served as a crucial ingredient in one of 
RSA's core products: SecurID tokens—little fobs you carried in a pocket and 
pulled out to prove your identity by entering the six-digit codes that were 
constantly updated on the fob's screen. If someone could steal the seed values 
stored in that warehouse, they could potentially clone those SecurID tokens and 
silently break the two-factor authentication they offered, allowing hackers to 
instantly bypass that security system anywhere in the world, accessing anything 
from bank accounts to national security secrets.

Now, staring at the network logs on his screen, it looked to Leetham like these 
keys to RSA’s global kingdom had already been stolen.

Leetham saw with dismay that the hackers had spent nine hours methodically 
siphoning the seeds out of the warehouse server and sending them via 
file-transfer protocol to a hacked server hosted by Rackspace, a cloud-hosting 
provider. But then he spotted something that gave him a flash of hope: The logs 
included the stolen username and password for that hacked server. The thieves 
had left their hiding place wide open, in plain sight. Leetham connected to the 
faraway Rackspace machine and typed in the stolen credentials. And there it 
was: The server’s directory still contained the entire pilfered seed collection 
as a compressed .rar file.

Using hacked credentials to log into a server that belongs to another company 
and mess with the data stored there is, Leetham admits, an unorthodox move at 
best—and a violation of US hacking laws at worst. But looking at RSA’s stolen 
holiest of holies on that Rackspace server, he didn’t hesitate. “I was going to 
take the heat,” he says. “Either way, I'm saving our shit.” He typed in the 
command to delete the file and hit enter.

Moments later, his computer’s command line came back with a response: “File not 
found.” He examined the Rackspace server’s contents again. It was empty. 
Leetham’s heart fell through the floor: The hackers had pulled the seed 
database off the server seconds before he was able to delete it.

After hunting these data thieves day and night, he had “taken a swipe at their 
jacket as they were running out the door,” as he says today. They had slipped 
through his fingers, escaping into the ether with his company’s most precious 
information. And though Leetham didn’t yet know it, those secrets were now in 
the hands of the Chinese military.

THE RSA BREACH, when it became public days later, would redefine the 
cybersecurity landscape. The company’s nightmare was a wake-up call not only 
for the information security industry—the worst-ever hack of a cybersecurity 
firm to date—but also a warning to the rest of the world. Timo Hirvonen, a 
researcher at security firm F-Secure, which published an outside analysis of 
the breach, saw it as a disturbing demonstration of the growing threat posed by 
a new class of state-sponsored hackers. “If a security company like RSA cannot 
protect itself,” Hirvonen remembers thinking at the time, “how can the rest of 
the world?”

The question was quite literal. The theft of the company's seed values meant 
that a critical safeguard had been removed from thousands of its customers’ 
networks. RSA's SecurID tokens were designed so that institutions from banks to 
the Pentagon could demand a second form of authentication from their employees 
and customers beyond a username and password—something physical in their pocket 
that they could prove they possessed, thus proving their identity. Only after 
typing in the code that appeared on their SecurID token (a code that typically 
changed every 60 seconds) could they gain access to their account.

The SecurID seeds that RSA generated and carefully distributed to its customers 
allowed those customers’ network administrators to set up servers that could 
generate the same codes, then check the ones users entered into login prompts 
to see if they were correct. Now, after stealing those seeds, sophisticated 
cyberspies had the keys to generate those codes without the physical tokens, 
opening an avenue into any account for which someone’s username or password was 
guessable, had already been stolen, or had been reused from another compromised 
account. RSA had added an extra, unique padlock to millions of doors around the 
internet, and these hackers now potentially knew the combination to every one.

This past December, when it became public that the company SolarWinds was 
hacked by Russian spies, the world woke up to the notion of a “supply chain 
attack”: a technique in which an adversary compromises a point of vulnerability 
in a software or hardware supplier positioned upstream from—and out of sight 
of—its target, a blind spot in the victim's view of their cybersecurity risks. 
The Kremlin operatives who hacked SolarWinds hid espionage code in an IT 
management tool called Orion, used by as many as 18,000 companies and 
institutions globally.

Using the SolarWinds supply chain compromise, Russia’s foreign intelligence 
agency, known as the SVR, penetrated deep into at least nine US federal 
agencies, including the State Department, the US Treasury, the Department of 
Justice, and NASA. In another world-shaking supply chain attack just a few 
years earlier, Russia’s military intelligence agency, known as the GRU, 
hijacked a piece of obscure Ukrainian accounting software to push out a 
data-destroying worm known as NotPetya, inflicting $10 billion in damage 
worldwide in the worst cyberattack in history.

For those with a longer memory, though, the RSA breach was the original massive 
supply chain attack. State cyberspies—who were later revealed to be working in 
the service of China’s People’s Liberation Army—penetrated infrastructure 
relied on across the globe to protect the internet. And in doing so, they 
pulled the rug out from under the entire world’s model of digital security. “It 
opened my eyes to supply chain attacks,” says Mikko Hypponen, chief research 
officer at F-Secure, who worked with Hirvonen on the company's analysis of the 
RSA breach. “It changed my view of the world: the fact that, if you can’t break 
into your target, you find the technology that they use and break in there 
instead.”

In the decade that followed, many key RSA executives involved in the company’s 
breach have held their silence, bound by 10-year nondisclosure agreements. Now 
those agreements have expired, allowing them to tell me their stories in new 
detail. Their accounts capture the experience of being targeted by 
sophisticated state hackers who patiently and persistently take on their most 
high-value networked targets on a global scale, where an adversary sometimes 
understands the interdependencies of its victims’ systems better than victims 
do themselves, and is willing to exploit those hidden relationships.

After 10 years of rampant state-sponsored hacking and supply chain hijacks, the 
RSA breach can now be seen as the herald of our current era of digital 
insecurity—and a lesson about how a determined adversary can undermine the 
things we trust most.

ON MARCH 8, 2011, a brisk late-winter day, Todd Leetham finished a smoke break 
and was walking back into RSA’s headquarters in Bedford, Massachusetts—a pair 
of connected buildings on the edge of a forest in the Boston suburbs—when a 
systems administrator pulled him aside and asked him to take a look at 
something strange.

The admin had noticed that one user had accessed a server from a PC that the 
user didn’t typically work on, and that the permissions setting on the account 
seemed unusual. A technical director investigating the anomalous login with 
Leetham and the admin asked Bill Duane, a veteran RSA engineer, to take a look. 
To Duane, who was busy working on a cryptographic algorithm at the time, the 
anomaly hardly looked like cause for alarm. “I frankly thought this 
administrator was crazy,” he remembers. “Fortunately he was stubborn enough to 
insist that something was wrong.”

Leetham and the company’s security incident responders started to trace the 
aberrant behavior and analyze the forensics of every machine the anomalous 
account had touched. They began to see more telltale oddities in employees’ 
credentials, stretching back days. The admin had been right. "Sure enough,” 
Duane says, “this was the tip of the iceberg.”

Over the next several days, the security team at RSA’s security operations 
center—a NASA- style control room with rows of desks and monitors covering one 
wall—meticulously traced the interlopers’ fingerprints. The RSA staffers began 
putting in nearly 20-hour workdays, driven by the chilling knowledge that the 
breach they were tracking was still unfolding. Management demanded updates on 
their findings every four hours, day or night.

The analysts eventually traced the origin of the breach to a single malicious 
file that they believed had landed on an RSA employee’s PC five days before 
they’d started their hunt. A staffer in Australia had received an email with 
the subject line “2011 Recruitment plan” and an Excel spreadsheet attached to 
it. He'd opened it. Inside the file was a script that exploited a zero-day 
vulnerability—a secret, unpatched security flaw—in Adobe Flash, planting a 
common piece of malicious software called Poison Ivy on the victim’s machine.

That initial point of entry onto RSA’s network, F-Secure’s Hirvonen would later 
point out in his own analysis, wasn't particularly sophisticated. A hacker 
wouldn’t have even been able to exploit the Flash vulnerability if the victim 
had been running a more recent version of Windows or Microsoft Office, or if 
he’d had limited access to install programs on his PC—as most security 
administrators for corporate and government networks recommend, Hirvonen says.

But it was from this ingress that the RSA analysts say the intruders began to 
demonstrate their real abilities. In fact, several RSA executives came to 
believe that at least two groups of hackers were in their network 
simultaneously—one highly skilled group exploiting the other’s access, perhaps, 
with or without their knowledge. “There’s the trail through the woods that the 
first one left, and right in the middle of it, branching off, is the second 
trail,” says Sam Curry, who was RSA’s chief security officer at the time. “And 
that second attack was much more skilled.”

On that Australian employee’s PC, someone had used a tool that pulled 
credentials out of the machine's memory and then reused those usernames and 
passwords to log into other machines on the network. They’d then scraped those 
computers’ memories for more usernames and passwords—finding some that belonged 
to more privileged administrators. The hackers eventually got to a server 
containing hundreds of users’ credentials. Today that credential-stealing 
hopscotching technique is common. But in 2011 the analysts were surprised to 
see how the hackers fanned out across the network. “It was really just the most 
brutal way to blow through our systems that I’d ever seen,” Duane says.

Breaches as extensive as the one carried out against RSA are often discovered 
months after the fact, when the intruders are long gone or lying dormant. But 
Duane says that the 2011 incident was different: Within days, the investigators 
had essentially caught up to the intruders and were watching them in action. 
“They’d try to get into a system, then we’d detect them a minute or two later 
and go in and shut down that system or disable access to it,” Duane says. “We 
were fighting them tooth and nail, in real time.”

It was in the midst of that feverish chase that Leetham caught the hackers 
stealing what he still believes was their highest-priority target: the SecurID 
seeds.

RSA executives told me that the part of their network responsible for 
manufacturing the SecurID hardware tokens was protected by an “air gap”—a total 
disconnection of computers from any machine that touches the internet. But in 
fact, Leetham says, one server on RSA’s internet-connected network was linked, 
through a firewall that allowed no other connections, to the seed warehouse on 
the manufacturing side. Every 15 minutes, that server would pull off a certain 
number of seeds so that they could be encrypted, written to a CD, and given to 
SecurID customers. That link was necessary; it allowed RSA’s business side to 
help customers set up their own server that could then check users’ six-digit 
code when it was typed into a login prompt. Even after the CD was shipped to a 
client, those seeds remained on the seed warehouse server as a backup if the 
customer’s SecurID server or its setup CD were somehow corrupted.

Now, instead of the usual once-every-15-minutes connections, Leetham saw logs 
of thousands of continuous requests for data every second. What’s more, the 
hackers had been collecting those seeds on not one but three compromised 
servers, relaying requests through the one connected machine. They had packaged 
up the collection of seeds in three parts, moved them off to the faraway 
Rackspace server, and then recombined them into what appeared to be the full 
database of every seed RSA had stored in the seed warehouse. “I was like, ‘Wow 
,’” Leetham says. “I kind of admired it. But at the same time: ‘Oh crap.’”

As it dawned on Leetham that the seed collection had likely been copied—and 
after he had made his seconds-too-late attempt to delete the data off the 
hackers’ server—the enormity of the event hit him: The trust that customers 
placed in RSA, perhaps its most valuable commodity, was about to be 
obliterated. “This is an extinction event,” he remembers thinking. “RSA is 
over.”

IT WAS LATE at night when the security team learned that the seed warehouse had 
been plundered. Bill Duane made the call: They would physically cut off as many 
of RSA’s network connections as necessary to limit the damage and stop any 
further theft of data. They hoped, in particular, to protect any customer 
information that mapped to the seeds, and which might be necessary for the 
hackers to exploit them. (Some RSA staff also suggested to me that the seeds 
had been stored in an encrypted state, and cutting off network connections was 
intended to prevent the hackers from stealing the key necessary to decrypt 
them.) Duane and an IT manager walked into the data center and started 
unplugging Ethernet cables one by one, severing the company’s connections to 
its manufacturing facility, parts of its network that handled core business 
processes like customer orders, even its website. “I basically shut off RSA’s 
business,” he says. “I crippled the company in order to stop any potential 
further release of data.”

The next day, RSA’s CEO, Art Coviello, was in a meeting in the conference room 
that adjoined his office, preparing a public statement about the ongoing 
breach. Coviello had been getting updates since the intrusions were discovered. 
As the extent of the breach had grown, he’d canceled a business trip to Brazil. 
But he’d remained relatively sanguine. After all, it didn’t sound like the 
hackers had breached any credit card data or other sensitive customer 
information. They’d kick out the hackers, he figured, post their statement, and 
get on with business.

But in the middle of the meeting, he remembers, a marketing executive at the 
table with him looked at her phone and murmured, “Oh dear.”

Coviello asked her what was wrong. She demurred. He took the phone out of her 
hand and read the message. It said that Bill Duane was coming up to Coviello’s 
office; he wanted to update the CEO in person. When he got upstairs, he 
delivered the news: The hackers had reached the SecurID seeds. “I felt like a 
cannonball had been shot through my stomach,” Coviello says.

In the hours that followed, RSA’s executives debated how to go public. One 
person in legal suggested they didn’t actually need to tell their customers, 
Sam Curry remembers. Coviello slammed a fist on the table: They would not only 
admit to the breach, he insisted, but get on the phone with every single 
customer to discuss how those companies could protect themselves. Joe Tucci, 
the CEO of parent company EMC, quickly suggested they bite the bullet and 
replace all 40 million-plus SecurID tokens. But RSA didn’t have nearly that 
many tokens available—in fact, the breach would force it to shut down 
manufacturing. For weeks after the hack, the company would only be able to 
restart production in a diminished capacity.

As the recovery effort got under way, one executive suggested they call it 
Project Phoenix. Coviello immediately nixed the name. “Bullshit,” he remembers 
saying. “We're not rising from the ashes. We're going to call this project 
Apollo 13. We're going to land the ship without injury.”

AT 7:00 THE next morning, March 17, RSA’s head of North American sales, David 
Castignola, finished up an early workout on a treadmill at his local gym in 
Detroit. When he picked up his phone, he saw that he had missed no fewer than 
12 calls—all from just that morning, and all from RSA’s president, Tom Haiser. 
RSA, Haiser’s voicemails said, was about to announce a major security breach. 
He needed to be in the building.

A few hours and a last-minute flight later, Castignola literally ran into RSA’s 
headquarters in Bedford and up to the fourth-floor conference room. He 
immediately noticed the pale, drawn faces of the staff who had been dealing 
with the unfolding crisis for more than a week. “Every little indicator I got 
was: This is worse than I can even get my head around,” Castignola remembers.

That afternoon, Coviello published an open letter to RSA’s customers on the 
company’s website. “Recently, our security systems identified an extremely 
sophisticated cyberattack in progress,” the letter read. “While at this time we 
are confident that the information extracted does not enable a successful 
direct attack on any of our RSA SecurID customers, this information could 
potentially be used to reduce the effectiveness of a current two-factor 
authentication implementation as part of a broader attack,” the letter 
continued—somewhat downplaying the crisis.

In Bedford, Castignola was given a conference room and the authority to ask for 
as many volunteers from the company as he needed. A rotating group of nearly 90 
staffers began the weeks-long, day-and-night process of arranging one-on-one 
phone calls with every customer. They worked from a script, walking customers 
through protective measures like adding or lengthening a PIN number as part of 
their SecurID logins, to make them harder for hackers to replicate. Castignola 
remembers walking down the halls of the building at 10 pm and hearing calls on 
speaker phones behind every closed door. In many cases customers were shouting. 
Castignola, Curry, and Coviello each did hundreds of those calls; Curry began 
to joke that his title was “chief apology officer.”

At the same time, paranoia was beginning to take hold in the company. The first 
night after the announcement, Castignola remembers walking by a wiring closet 
and seeing an absurd number of people walking out of it, far more than he 
imagined could have ever fit. “Who are those people?” he asked another nearby 
executive. “That’s the government,” the executive responded vaguely.

In fact, by the time Castignola had landed in Massachusetts, both the NSA and 
the FBI had been called to help the company’s investigation, as had defense 
contractor Northrup Grumman and incident response firm Mandiant. (By chance, 
employees of Mandiant had already been on-site prior to the breach, installing 
security sensor equipment on RSA’s network.)

RSA staff began to take drastic measures. Worried that their phone system might 
be compromised, the company switched carriers, moving from AT&T to Verizon 
phones. Executives, not trusting even the new phones, held meetings in person 
and shared paper copies of documents. The FBI, fearing an accomplice in RSA's 
ranks because of the apparent level of knowledge the intruders seemed to have 
of company systems, started doing background checks. “I made sure that all 
members of the team—I don't care who they were, what reputation they had—were 
investigated, because you have to be sure,” Duane says.

The windows of some executives’ offices and conference rooms were covered in 
layers of butcher paper, to prevent laser microphone surveillance—a 
long-distance eavesdropping technique that picks up conversations from 
vibrations in window panes—by imagined spies in the surrounding woods. The 
building was swept for bugs. Multiple executives insisted that they did find 
hidden listening devices—though some were so old that their batteries were 
dead. It was never clear if those bugs had any relation to the breach.

Meanwhile, RSA’s security team and the investigators brought in to help were 
“tearing the house down to the studs,” as Curry put it. In every part of the 
network that the hackers touched, he says, they scrubbed the contents of 
potentially compromised machines—and even ones adjacent to them. “We physically 
went around and, if there was a box they were on, it got wiped,” Curry says. 
“If you lost data, too bad.”

IN LATE MAY 2011, about two months after the breach announcement, RSA was still 
recovering, rebuilding, and apologizing to customers when it was hit with an 
aftershock: A post appeared on the influential tech blogger Robert X. 
Cringely’s website, titled “InsecureID: No More Secrets?”

The post was based on a tip from a source inside a major defense contractor, 
who’d told Cringely that the company was responding to an extensive intrusion 
by hackers who seemed to have used stolen RSA seed values to get in. Everyone 
at the defense contractor was having their RSA tokens replaced. Suddenly RSA's 
breach seemed far more severe than the company’s original announcement had 
described it. “Well it didn’t take long for whoever cracked RSA to find a lock 
to fit that key,” Cringely wrote. “What if every RSA token has been 
compromised, everywhere?”

Two days later, Reuters revealed the name of the hacked military contractor: 
Lockheed Martin, a company that represented a cornucopia of ultra-secret plans 
for weapons and intelligence technologies. “The scab was healing,” Castignola 
says. “Then Lockheed hit. That was like a mushroom cloud. We were back at it 
again.”

In the days that followed, defense contractors Northrup Grumman and L-3 were 
also named in news reports. Hackers with SecurID’s seed values had targeted 
them too, the stories said, though it was never clear how deeply the intruders 
had penetrated the companies. Nor was it revealed what the hackers had accessed 
inside Lockheed Martin. The company claimed it had prevented the spies from 
stealing sensitive information like customer data or classified secrets.

In another open letter to customers in early June 2011, RSA’s Art Coviello 
admitted, “We were able to confirm that information taken from RSA in March had 
been used as an element of an attempted broader attack on Lockheed Martin, a 
major US government defense contractor.”

Today, with 10 years of hindsight, Coviello and other former RSA executives 
tell a story that starkly contradicts accounts from the time: Most of the 
former RSA staff who spoke to me claim that it was never proven that SecurID 
had any role in the Lockheed breach. Coviello, Curry, Castignola, and Duane all 
argued that it was never confirmed that the intruders inside RSA’s systems had 
successfully stolen the full list of seed values in an uncorrupted, unencrypted 
form, nor the customer list mapped to those seeds necessary to exploit them. “I 
don't think that Lockheed’s attack was related to us at all,” Coviello states 
flatly.

By contrast, in the years since 2011, Lockheed Martin has detailed how hackers 
used information stolen in RSA’s SecurID breach as a stepping stone to 
penetrate its network—even as it insists that no information was successfully 
stolen in that event. A Lockheed source with knowledge of the company’s 
incident response reaffirmed to WIRED the company’s original claims. “We stand 
by our forensic investigation findings,” the source says. “Our analysis 
determined the breach of our two-factor authentication token provider was a 
direct contributing factor in the attack on our network, a fact that has been 
widely reported by the media and acknowledged publicly by our vendor, including 
Art.” In fact, the Lockheed source says the company saw the hackers entering 
SecurID codes in real time, confirmed that the targeted users hadn’t lost their 
tokens, and then, after replacing those users’ tokens, watched the hackers 
continue to unsuccessfully enter codes from the old tokens.

The NSA, for its part, has never had much doubt about RSA’s role in subsequent 
break-ins. In a briefing to the Senate Armed Services Committee a year after 
the RSA breach, NSA’s director, General Keith Alexander, said that the RSA hack 
“led to at least one US defense contractor being victimized by actors wielding 
counterfeit credentials,” and that the Department of Defense had been forced to 
replace every RSA token it used.

In the hearing, Alexander went on to pin those attacks, vaguely, on an 
increasingly common culprit: China. The New York Times and the security firm 
Mandiant would later publish a groundbreaking exposé on a Chinese state hacker 
group that Mandiant had named APT1. The group was believed to be People’s 
Liberation Army Unit 61398, based on the outskirts of Shanghai. Among its 
dozens of targets over the previous five years: the governments of the United 
States, Canada, South Korea, Taiwan, Vietnam; and the United Nations—and RSA.

After those reports became public, Bill Duane printed out a picture of the 
hackers’ headquarters, a 12-story white building off of Shanghai’s Datong Road. 
He taped it to a dartboard in his office.

I ASKED DUANE, who retired from RSA in 2015 after more than 20 years at the 
company, at what point he considered RSA’s breach truly over: Was it the 
morning after he made the lonely decision to unplug a chunk of the company’s 
network? Or when the NSA, the FBI, Mandiant, and Northrup had wrapped up and 
left? “Our view was that the attack wasn’t ever over,” he responds. “We knew 
that they left backdoors, that they’re always going to be able to break in, 
that the attacker can, with their resources, get in when they want to get in.”

Duane’s harrowing experience in response to the intrusion taught him—and 
perhaps should teach all of us—that “every network is dirty,” as he puts it. 
Now he preaches to companies that they should segment their systems and cordon 
off their most sensitive data so that it remains impenetrable even to an 
adversary that’s already inside the firewall.

As for Todd Leetham, he watched the SolarWinds fiasco unfold over the past six 
months with a grim sense of déjà vu. “Everybody was shocked. But in hindsight, 
well, duh, it was kind of everywhere,” he says of SolarWinds. As was, by 
analogy, SecurID, 10 years earlier.

Leetham sees the lessons of RSA’s supply chain compromise in starker terms than 
even his colleague Bill Duane: It was “a glimpse of just how fragile the world 
is,” he says. “It’s a house of cards during a tornado warning.”

SolarWinds demonstrated how precarious this structure remains, he argues. As 
Leetham sees it, the security world blindly put its trust in something that 
existed outside its threat model, never imagining that an adversary might 
attack it. And once again, the adversary pulled out a supporting card 
underpinning the house’s foundation—one that had been confused for solid ground.
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