(Greek: κρυπτεία / krupteía, from κρυπτός / kruptós, “hidden, secret things”)

Archive for the ‘Codes’ Category

Malware Wars!… Cyber-Wars!.. Cyber-Espionage-Wars! OH MY

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Flame, DuQU, STUXNET, and now GAUSS:

Well, it was bound to happen and it finally did, a third variant of malware that is ostensibly connected to the story that Mikko Hypponen posted about after an email he got from a nuclear scientist in Iran has come to pass as true. The email claimed that a new piece of malware was playing AC/DC “Thunderstruck” at late hours on systems it had infected within the labs in Iran. I took this with a grain of salt and had some discussions with Mikko about it offline, he confirmed that the email came ostensibly from a known quantity in the AEOI and we left it at that, its unsubstantiated. Low and behold a week or two later and here we are with Eugene tweeting to the world that “GAUSS” is out there and has been since about 2011.

Gauss it seems had many functions and some of them are still unknown because there is an encryption around the payload that has yet to be cracked by anyone. Eugene has asked for a crowd sourced solution to that and I am sure that eventually someone will come out with the key and we will once again peer into the mind of these coders with a penchant for science and celestial mechanics. It seems from the data provided thus far from the reverse R&D that it is indeed the same folks doing the work with the same framework and foibles, and thus, it is again easily tied back to the US and Israel (allegedly per the mouthiness of Joe F-Bomb Veep) and that it is once again a weapon against the whole of the middle east with a decided targeting of Lebanon this time around. Which is an interesting target all the more since there has been some interesting financial news of late concerning banks and terror funding, but I digress…

I am sure many of you out there are already familiar with the technology of the malware so I am leaving all of that out here for perhaps another day. No, what I want to talk about is the larger paradigm here concerning the sandbox, espionage, warfare, and the infamous if not poorly named “CyberWar” going on as it becomes more and more apparent in scope. All of which seems to be centered on using massive malware schemes to hoover data as well as pull the trigger when necessary on periodic digital attacks on infrastructure. Something that truly has not been seen before Stuxnet and seems to only have geometrically progressed since Langer et al let the cat out of the bag on it.

Malware Wars:

Generally, in the information security sector, when I explain the prevalence of malware today I often go back to the beginning of the Morris worm. I explain the nature of early virus’ and how they were rather playful. I also explain that once the digital crime area became profitable and firewalls became a standard appliance in the network environment, the bad actors had to pivot to generally tunnel their data from the inside out home through such things as a firewall. This always seems to make sense to those I explain it to and today it is the norm. Malware, and the use of zero day as well as SE exploits to get the user to install software is the the way to go. It’s a form of digital judo really, using the opponents strength against them by finding their fulcrum weakness.

And so, it was only natural that the espionage groups of the world would turn to malware as the main means of gaining access to information that usually would take a human asset and a lot of time. By leveraging human nature and software flaws it has been a big win for some time now. I was actually amused that Henry Crumpton in the “Art of Intelligence” talks about how the CIA became a very early adopter of the network centric style of warfare. I imagine that some of the early malware out there used by spooks to steal from unprotected networks was CIA in origin and in fact that today’s Gauss probably has some relatives out there we have yet to see by people who have been doing this for some time now and we, the general public had no idea.

Times change though, and it seems that Eugene’s infrastructure for collecting data is creating a very wide dragnet for his people to find these infections and then reverse them. As we move forward expect to see more of these pop up, and surely soon, these will not just be US/UK/IL based attempts. Soon I think we will see the outsourced and insourced products of the likes of Iran and other nation states.. Perhaps we already have seen them, well, people like Mikko and Eugene may have at least. Who knows, maybe someday I will find something rooting about my network huh? Suffice to say, that this is just the beginning folks so get used to it.. And get used to seeing Eugene’s face and name popping up all over the place as well.. Superior showman that he is.

An Interesting Week of News About Lebanon and Bankers:

Meanwhile, I think it very telling and interesting as we see the scope of these malware attacks opening up, that not only one or two countries were targeted, but pretty much the whole of the Middle East as well. Seems its an equal opportunity thing, of course the malware never can quite be trusted to stay within the network or systems that it was meant for can we? There will always be spillage and potential for leaks that might tip off the opposition that its there. In the case of Gauss, it seems to have been targeted more at Lebanon, but, it may have been just one state out of a few it was really meant for. In the case of Lebanon though, and the fact that this piece of malware was also set to steal banking data from that area, one has to look on in wonder about the recent events surrounding HSBC.

Obviously this module was meant to be used either to just collect intelligence on banking going on as well as possibly a means to leverage those accounts in ways as yet undetermined by the rest of us. Only the makers and operators really know what the intent was there, but, one can extrapolate a bit. As terror finances go, the Middle East is the hotbed, so any intelligence on movement of money could be used in that light just as well as other ways to track the finances of criminal, geopolitical, and economic decisions being made there. Whether it be corporations or governmental bodies, this kind of intelligence would be highly prized and I can see why they would install that feature on Gauss.

All of this though, so close to the revelations of HSBC has me thinking about what else we might see coming down the pike soon on this front as well. Cur off the funding activities, and you make it much harder to conduct terrorism huh? Keep your eyes open.. You may see some interesting things happening soon, especially given that the Gauss is out of the bag now too. Operations will likely have to roll up a bit quicker.

Espionage vs. Sabotage vs. Overt Warfare of Cyber-Warfare:

Recently I have been working on some presentation stuff with someone on the whole cyberwar paradigm and this week just blew the lid off the whole debate again for me. The question as well as the rancor I have over the term “Cyberwar” has been going on some time now and in this instance as well as Stuxnet and Flame and DuQu, can we term it as cyberwar? Is this instead solely espionage? What about the elements of sabotage we saw in Stuxnet that caused actual kinetic reactions? Is that cyberwar? If there is no real war declared what do you term it other than sabotage within the confines of espionage and statecraft?

Then there is the whole issue of the use of “Cold War” to describe the whole effect of these operations. Now we have a possible cold war between those states like Iran who are now coding their own malware to attack our systems and to sabotage things to make our lives harder. Is that a war? A type of war? All of these questions are being bandied about all the while we are obviously prosecuting said war in theater as I write this. I personally am at a loss to say exactly what it is or what to term it really. Neither does the DoD at this point as they are still working on doctrine to put out there for the warriors to follow. Is there a need for prosecuting this war? It would seem that the US and others working with them seem to think so. I for one can understand the desire to and the hubris to actually do it.

Hubris though, has a funny way of coming back on you in spectacular blowback. This is my greatest fear and seemingly others, however, we still have a country and a government that is flailing about *cough the Senate cough* unable to do anything constructive to protect our own infrastructure even at a low level. So, i would think twice about the scenarios of actually leaking statements of “we did it” so quickly even if you perceive that the opposition has no current ability to strike back.. Cuz soon enough they will. It certainly won’t be a grand scale attack on our grid or telco when it does happen, but, we will likely see pockets of trouble and Iran or others will pop up with a smile, waving, and saying “HA HA!” when it does occur.

The Sandbox and The Wars We Are Prosecuting There by Malware Proxy:

Back to the Middle East though… We have been entrenched in there for so so long. Growing up I regularly watched the news reports about Lebanon and Israel, Iran and the hostages, Iraq, Saddam, Russian Proxy wars via terrorism, Ghadaffi and his ambitions as well as terror plots (which also hit close to home with the Lockerbee bombing) You kids today might think this is all new, but let me tell you, this has been going on for a long long time. One might even say thousands of years (Mecca anyone? Crusades?) So, it’s little wonder then that this would all be focused on the Med.

We are conducting proxy wars not only because of 9/11 but also economic and energy reasons as well. You want a good taste of that? Take a look at “Three Days of the Condor” a movie about a fictional “reader” for the CIA who stumbles on to a plan to disrupt governments in the Middle East to affect oil prices and access. For every person that said the Iraq war and Afghanistan wasn’t about oil, I say to them look at the bigger picture. There are echoes there of control and access that you cannot ignore. Frankly, if there wasn’t oil and money in the region, I think we would have quite a different story to look on as regards our implementing our forces there.

So, with that in mind, and with terrorism and nuclear ambitions (Iran) look at the malware targeting going on. Look at all of the nascent “Arab Springs” going on (albeit really, these are not springs, these are uprisings) we have peoples who want not to live under oppressive regimes not just because they aren’t free to buy an iPhone or surf porn, but they are also oppressed tribes or sects that no longer wish to be abused. All of this though, all of the fighting and insurgency upsets the very delicate balance that is the Middle East. Something that we in the US for our part, have been trying to cultivate (stability) even if that stability came from another strongman that we really don’t care for, but, who will work with us in trade and positional relevance to other states.

In goes the malware.. Not only to see what’s going on, but also to stop things from happening. These areas can be notoriously hard to have HUMINT in and its just easier to send in malware and rely on human nature to have a larger boon in intelligence than to try and recruit people to spy. It’s as simple as that. Hear that sucking sound? That’s all their data going to a server in Virginia. In the eyes of the services and the government, this is clearly the rights means to the ends they desire.

We Have Many Tigers by The Tail and I Expect Blowback:

Like I said before though, blowback has a nasty habit of boomeranging and here we have multiple states to deal with. Sure, not all of them has the ability to strike back at us in kind, but, as you have seen in Bulgaria, the Iranians just decided to go with their usual Hezbollah proxy war of terrorism. Others may do the same, or, they may bide their time and start hiring coders on the internet. Maybe they will hire out of Russia, or China perhaps. Hell, it’s all for sale now in the net right? The problem overall is that since we claimed the Iran attack at Natanz, we now are not only the big boy on the block, we are now the go to to be blamed for anything. Even if we say we didn’t do it, who’s gonna really believe us?

The cyber-genie is out of the cyber-bottle.

Then, this week we saw something new occur. A PSYOP, albeit a bad one, was perpetrated by the Assad regime it seems. Reuters was hacked and stories tweeted/placed on the net about how the rebel forces in Aleppo had cut and run. It was an interesting idea, but, it was ineffective for a number of reasons. The crux though is that Reuters saw it and immediately said it was false. So, no one really believed the stories. However, a more subtle approach at PSYOPS or DISINFO campaigns is likely in the offing for the near future I’d think. Surely we have been doing this for a while against them, whether it be in the news cycles or more subtle sock puppets online in social media sites like Twitter or Facebook. The US has been doing this for a long time and is well practiced. Syria though, not so much.

I have mentioned the other events above, but here are some links to stories for you to read up on it…

  • PSYOPS Operations by the nascent Syrian cyber warfare units on Reuters
  • Hezbollah’s attack in Bulgaria (bus bombing) in response to STUXNET and other machinations
  • Ostensible output of INTEL from Gauss that may have gotten HSBC in trouble and others to come (Terrorism funding and money laundering)

All in all though, I’d have to say that once the players become more sophisticated, we may in fact see some attacks against us that might work. Albeit those attacks will not be the “Cyber Pearl Harbor” that Dr. Cyberlove would like you to be afraid of. Politically too, there will be blowback from the Middle East now. I am sure that even after Wikileaks cables dump, the governments of the Med thought at least they could foresee what the US was up to and have a modicum of statecraft occur. Now though, I think we have pissed in the pool a bit too much and only have ourselves to blame with the shit hits the fan and we don’t have that many friends any more to rely on.

It’s a delicate balance.. #shutupeugene

Pandora’s Box Has Been Opened:

In the end, we have opened Pandora’s box and there is no way to get that which has escaped back into it. We have given the weapon framework away due to the nature of the carrier. Even if Gauss is encrypted, it will be broken and then what? Unlike traditional weapons that destroy themselves, the malware we have sent can be easily reverse engineered. It will give ideas to those wishing to create better versions and they will be turned on us in targeted and wide fashions to wreak as much digital havoc as possible. Unfortunately, you and I my friends are the collateral damage here, as we all depend on the systems that these types of malware insert themselves into and manipulate.

It is certainly evident as I stated above, our government here in the US is unable to come up with reasonable means to protect our systems. Systems that they do not own, Hell, the internet itself is not a government run or owned entity either, and yet they want to have an executive ability to shut it down? This alone shows you the problem of their thinking processes. They then decide to open the box and release the malware genie anyway… It’s all kind of scary when you think about it. If this is hard to concieve, lets put it in terms of biological weapons.. Weapons systems that have been banned since Nixon was in office.

The allusion should be quite easy to understand. Especially since malware was originally termed “Virus” There is a direct analogy there. Anyway, here’s the crux of it all. Just like bioweapons, digital “bioware” for lack of a better term, also cannot be controlled once let into the environment. Things mutate, whether at the hand of people or systems, things will not be contained within the intended victims. They will escape (as did all the malware we have seen) and will tend to have unforeseen consequences. God forbid we start really working on polymorphics again huh? If the circumstances are right, then, we could have a problem.

Will we eventually have to have another treaty ban on malware of this kind?

Time will tell.. Until then, we all will just be along for the cyberwar ride I guess. We seem to be steadily marching toward the “cyberwar” everyone is talking about… determined really to prosecute it… But will it get us anywhere?


Enemy of the State

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Fort Meade has acres of mainframe computers underground. You're talking on the phone and you use the word, "bomb," "president," "Allah," any of a hundred key words, the computer recognizes it, automatically records it, red flags it for analysis; that was twenty years ago.

From The New Yorker; The Secret Sharer

The government argues that Drake recklessly endangered the lives of American servicemen. “This is not an issue of benign documents,” William M. Welch II, the senior litigation counsel who is prosecuting the case, argued at a hearing in March, 2010. The N.S.A., he went on, collects “intelligence for the soldier in the field. So when individuals go out and they harm that ability, our intelligence goes dark and our soldier in the field gets harmed.”

Top officials at the Justice Department describe such leak prosecutions as almost obligatory. Lanny Breuer, the Assistant Attorney General who supervises the department’s criminal division, told me, “You don’t get to break the law and disclose classified information just because you want to.” He added, “Politics should play no role in it whatsoever.”

Politics should play no role whatsoever? Really? This man is delusional to think that the statement, albeit correct, is actually factual. Of course politics play a part in such prosecutions, and case in point, this article cites examples of people getting slaps on the hand for breaking the espionage act and others where TS/S documents are concerned. The reasons that these others were not prosecuted to the full extent of the law was exactly because of politics and their entanglements. No Mr. Breuer, politics do play a role all too often.

That said, I encourage you all to read the full article and judge for yourselves just what happened with the case against Mr. Drake. It is my understanding from other sources as well as the New Yorker piece, that Drake was seeking to show waste on a grand scale while others were motivated by the idea that the sweeping changes to US law and oversight within the espionage area had taken a deep turn for the un-constitutional. This is an assessment that I agree with and have seen even more such dark turns lately where the digital realm is concerned. Frankly, at times I am a bit scared of the access and perhaps excess that the changes in the law have allowed for the NSA as well as anyone with enough juice within the newly minted security infrastructure post 9/11.

Constitutional Law vs. Technological Ease of Access vs. Political Agendas:

When the Constitution was created none of the technologies at play today were even a dream for the makers. Today though, the ideas of privacy, unreasonable search and seizure, and the fundamental freedoms we claim to cherish so much have been blurred. The blame for this rests partly on the technology, but mostly on the people who should be monitoring their system of laws. After 9/11 the people became all too trusting of the government to take care of them and all too willing to accept the over-reaches that they knew of while they were kept in the dark about others.

Case in point would be the FISA and warrantless wiretap situation that the Bush administration put into play after the terrorist attacks. It was the belief of the administration and the law enforcement community (certain factions) that too much time was lost to entering FISA warrants and getting approvals. So, instead they began to draft opinions that said the process was too ponderous, all the while they were putting together a secret process to just bypass the FISA altogether with or without the legal status to do so. This then begat the further access programs that essentially placed a tap on ALL communications going in and out of the backbone of the internet with the NARUS systems in the MAE’s around the country.

Since the technology was there, and it could be placed into a position to audit everything, they just said let’s do it. Thus, all traffic that you or I create over the Internet has the potential of being captured, flagged, and audited by someone at Ft. Meade without a warrant to do so. This also includes the cell phones as well because that traffic too passes through the same backbone system. Like the image of Brill above states;

Fort Meade has acres of mainframe computers underground. You’re talking on the phone and you use the word, “bomb,” “president,” “Allah,” any of a hundred key words, the computer recognizes it, automatically records it, red flags it for analysis; that was twenty years ago.

Brill, a character from Enemy of the State, was going on about this in a film out before the attacks on the US. It would seem that if the technology had not already been in place then, the administration took a cue from the film and made it a reality after the twin towers came down. After all, the enemy could be anyone and the US populace wanted an action hero to take on the bad men and win. The same people though, did not seem to understand that to do so, the administration would take the shortcut of bypassing decades of laws set in place to protect our freedoms from excessive powers that the Bush administration wanted to have to ‘protect’ us.

It was this over-stepping of the laws that others within the story at The New Yorker had begun to tell to the Sun reporter and who now are being pursued by an alleged non political NSA and government for calling them on their breaking of the law. Just as much as Mr. Drake was seeking to show that the waste created by Trailblazer could also tie into the misuse of ThinThread’s code to eavesdrop on anyone.

Both of these concerns are shared by me as well. After all, with the technology in place and without the oversight, how do we know that abuses aren’t happening? The NSA is famously known to tell the Senate oversight committee to go pound sand… So, who is really watching the watchers?

Right Versus Wrong and Speaking Truth To Power; Do We Have A Say Anymore?:

So, if you have access to classified materials and programs and you see that things have gone off the rails how can you expect to report on it to the authorities and not be prosecuted? It used to be that there were protections, but, it seems now post 9/11 that changes to the paradigms of classification and the re-interpretation of the law to suit the state, it has become increasingly impossible to whistle blow and not be prosecuted. What’s more, if you decide to report, the data that you are reporting on may be classified to the extent that it cannot even be used in open court or with your non cleared lawyer because it may be deemed too sensitive.

The net effect is that if there is malfeasance going on it may be impossible to report it and not get yourself into dire legal trouble with the current whistle blowing legislation on the books. This makes it even easier for the state and or entities and parties within its infrastructure to not abide by the law and have little to fear of oversight or speaking truth to power.

Sheeple vs. The Informed and Worried:

Meanwhile, the populace may live their lives unaware of the capacities for the state to listen to them and or present evidence gathered on them in an extra-legal way. At the very least, due to the wider interpretation of the law, it is easier for the state to gather and use evidence in ways that were not possible before because of the latitudes given post the Bush administration.

From a privacy perspective and the expectation thereof, the idea that all traffic is being hoovered up by the state is kind of scary. From a constitutional law perspective, you have the right to privacy in your papers and your domicile. Does this actually apply to digital papers, computers, hard drives, and anything you pass over telco lines to the cloud? Or is it considered public domain like your trash being placed at the end of your driveway?

This is an important precedent and should be considered with every email, IM, and call you make today. Just as well, if you are intent on retaining your privacy, what are the ways to do so now that all of these lines of communication are monitored by the state? One also has to determine just how worried they should be about intrusion into their privacy. After all, today we as a people give up a lot of information on ourselves at sites like Facebook and if we do that, just how much privacy can we expect?

Following that thought process, if we give up our privacy so easily how can we make an argument against the changes to the FISA rules as well as other laws where eavesdropping on our daily digital lives are concerned?

I for one do not want all of my conversations recorded for someone else to audit whether or not I may have said or done something that could be construed as illegal or perhaps pique the interests of the fed. Of course today one could easily be stopped in some states for alleged traffic violations and be asked if they could clone your phone data… Just because.

Whistle Blowing… Not So Much:

I guess in the end that the state of affairs today leans heavily toward the government being able to pretty much do what it wants to. From the warrantless wiretaps to the detention of non combatants, we have quite an inheritance from 9/11 and the Bush years. Unfortunately much of what President Obama had pledged he would roll back from those years have instead been re-approved if not enhanced. Add the whole Wikileaks debacle and now you have an even more reflexive and paranoid government trying to over classify everything and getting really bent when things get out.

So, the idea of whistle blowing I think is pretty much a dead one from here on. If anyone sees wrongdoing going on then they probably will let it go for fear that they will be prosecuted into oblivion.

And then the state wins… There have to be checks and balances.


SPOOK COUNTRY 2011: HBGary, Palantir, and the CIRC

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The establishment of a Corporate Information

Reconnaissance Cell (CIRC) will provide Hunton &

Williams LLP with a full spectrum capability set to

collect, analyze, and affect adversarial entities and

networks of interest.

From: Team Themis pdf

CIRC: The New Private Intelligence Wing of (insert company name here)

The HBGary debacle is widening and the players are beginning to jump ship each day. The HBGary mother company is disavowing Aaron Barr and HBGary Federal today via twitter and press releases. However, if you look at the email spool that was leaked, you can see that they could have put a stop to Aaron’s game but failed to put the hammer down. I personally think that they all saw the risk, but they also saw the dollar signs, which in the end won the day.

What Aaron and HBGary/Palantir/Berico were offering was a new kind of intelligence gathering unit or “cell” as they called it in the pdf they shopped to Hunton & Williams LLP. Now, the idea and practice of private intelligence gathering has been around for a very long time, however, the stakes are changing today in the digital world. In the case of Hunton, they were looking for help at the behest of the likes of Bank of America to fight off Wikileaks… And when I say fight them off, it would seem more in the sense of an anything goes just short of “wet works” operations by what I see in the spool which is quite telling.

You see, Wikileaks has made claims that they have a certain 5 gig of data that belonged to a CEO of a bank. Suddenly BofA is all set to have Hunton work with the likes of Aaron Barr on a black project to combat Wikileaks. I guess the cat is out of the bag then isn’t it on just who’s data that is on that alleged hard drive huh? It would seem that someone lost an unencrypted drive or, someone inside the company had had enough and leaked the data to Wikileaks. Will we ever really know I wonder?

Either way, Barr et al, were ready to offer a new offering to Hunton and BofA, an intelligence red cell that could use the best of new technologies against Anonymous and Wikileaks. Now, the document says nothing about Anonymous nor Wikileaks, but the email spool does. This was the intent of the pitch and it was the desire of Hunton and BofA to make both Anonymous and Wikileaks go away, for surely if Wikileaks were attacked Anonymous would be the de facto response would they not?

A long time ago William Gibson predicted this kind of war of attrition online. His dystopian world included private intelligence firms as well as lone hackers out there “DataCowboy’s” running the gamut of corporate intelligence operations to outright theft of Pharma-Kombinat data. It seems that his prescient writings are coming into shape today as a reality in a way. With the advent of what Barr and company wanted to offer, they would be that new “cowboy” or digital Yakuza that would rid clients of pesky digital and real world problems through online investigation and manipulation.

In short, Hunton would have their very own C4I cell within their corporate walls to set against any problem they saw fit. Not only this, but had this sale been a go, then perhaps this would be a standard offering to every other company who could afford it. Can you imagine the bulk of corporations out tehre having their own internal intelligence and dirty tricks wings? Nixon, EH Hunt, and Liddy would all be proud. Though, Nixon and the plumbers would have LOVED to have the technology that Aaron has today, had they had it, they may in fact have been able to pull off that little black bag job on Democratic HQ without ever having to have stepped inside the Watergate

The Technology:

I previously wrote about the technology and methods that Aaron wanted to use/develop and what he was attempting to use on Anonymous as a group as the test case. The technology is based on frequency analysis, link connections, social networking, and a bit of manual investigation. However, it seemed to Aaron, that the bulk of the work would be on the technology side linking people together without really doing the grunt work. The grunt work would be actually conducting analysis of connections and the people who have made them. Their reasons for connections being really left out of the picture as well as the chance that many people within the mass lemming hoards of Anonymous are just click happy clueless folks.

Nor did Aaron take into account the use of the same technologies out there to obfuscate identities and connections by those people who are capable, to completely elude his system altogether. These core people that he was looking to connect together as Anonymous, if indeed he is right, are tech savvy and certainly would take precautions. So, how is it that he thinks he will be able to use macroverse data to define a micro-verse problem? I am steadily coming to the conclusion that perhaps he was not looking to use that data to winnow it down to a few. Instead, through the emails, I believe he was just going to aggregate data from the clueless LOIC users and leverage that by giving the Feds easy pickings to investigate, arrest, and hopefully put the pressure on the core of Anonymous.

There was talk in the emails of using pressure points on people like the financial supporters of Wikileaks. This backs up the statement above because if people are using digital means to support Wikileaks or Anonymous they leave an easy enough trail to follow and aggregate. Those who are friending Facebook support pages for either entity and use real or pseudo real information consistently, you can easily track them. Eventually, you will get their real identities by sifting the data over time using a tool like Palantir, or for that matter Maltego.

The ANONYMOUS names file

This however, does not work on those who are net and security savvy.. AKA hackers. Aaron was too quick to make assumptions that the core of Anonymous weren’t indeed smart enough to cover their tracks and he paid the price as we have seen.

The upshot here and extending what I have said before.. A fool with a tool.. Is still a fool.

What is coming out though more each day, is that not only was Aaron and HBGary Fed offering Palantir, but they were also offering the potential for 0day technologies as a means to gather intelligence from those targets as well as use against them in various ways. This is one of the scarier things to come out of the emails. Here we have a company that is creating 0day for use by intelligence and government that is now potentially offering it to private corporations.

Truly, it’s black Ice… Hell, I wouldn’t be surprised if one of their 0day offerings wasn’t already called that.

The INFOSEC Community, HBGary, and Spook Country:

Since my last post was put on Infosecisland, I had some heated comments from folks who, like those commenting on the Ligattleaks events, have begun moralizing about right and wrong. Their perception is that this whole HBGary is an Infosec community issue, and in reality it isn’t. The Infosec community is just what the shortened name means, (information security) You all in the community are there to protect the data of the client. When you cross the line into intelligence gathering you go from a farily clear black and white, to a world of grays.

HBGary crossed into the gray areas long ago when they started the Fed practice and began working with the likes of the NSA/DOD/CIA etc. What the infosec community has to learn is that now the true nature of cyberwar is not just shutting down the grid and trying to destroy a country, but it also is the “Thousand Grains of Sand” approach to not only spying, but warfare in general. Information is the currency today as it ever was, it just so happens now that it is easier to get that information digitally by hacking into something as opposed to hiring a spy.

So, all of you CISSP’s out there fighting the good fight to make your company actually have policies and procedures, well, you also have to contend with the idea that you are now at war. It’s no longer just about the kiddies taking credit cards. It’s now about the Yakuza, the Russian Mob, and governments looking to steal your data or your access. Welcome to the new world of “spook country”

There is no black and white. There is only gray now.

The Morals:

And so it was, that I was getting lambasted on infosecisland for commenting that I could not really blame Anonymous for their actions completely against HBGary/Aaron. Know what? I still can’t really blame them. As an entity, Anonymous has fought the good fight on many occasions and increasingly they have been a part of the mix where the domino’s are finally falling all over the Middle East presently. Certain factions of the hacker community as well have been assisting when the comms in these countries have been stifled by the local repressive governments and dictators in an effort to control what the outside world see’s as well as its own people inside.

It is my belief that Anonymous does have its bad elements, but, given what I know and what I have seen, so does every group or government. Take a look at our own countries past with regard to the Middle East and the CIA’s machinations there. Instead of fighting for a truly democratic ideal, they have instead sided with the strong man in hopes of someday making that transition to a free society, but in the meantime, we have a malleable player in the region, like Mubarak.

So far, I don’t see Anonymous doing this. So, in my world of gray, until such time as Anonymous does something so unconscionable that it requires their destruction, I say let it ride. For those of your out there saying they are doing it for the power and their own ends, I point you in the direction of our government and say this; “Pot —> Kettle —> Black” Everyone does everything whether it be a single person or a government body out of a desired outcome for themselves. Its a simple fact.


We truly live in interesting times as the Chinese would curse us with. Today the technology and the creative ways to use it are outstripping the governments in ability to keep things secret. In the case of Anonymous and HBGary, we have seen just how far the company was willing to go to subvert the laws to effect the ends of their clients. The same can be said about the machinations of the government and the military in their ends. However, one has to look at those ends and the means to get them and judge just was it out of bounds. In the case of the Barr incident, we are seeing that true intelligence techniques of disinformation, psyops, and dirty tricks were on the table for a private company to use against private citizens throughout the globe.

The truth is that this has always been an offering… Just this time the technologies are different and more prevalent.

If you are online, and you do not take precautions to insure your privacy, then you lose. This is even more true today in the US as we see more and more bills and laws allowing the government and police to audit everything you do without the benefit of warrants and or by use of National Security Letters.

The only privacy you truly have, is that which you make for yourself. Keep your wits about you.


Top Secret America: The Fifth Column, Uncontrolled and Unaccounted For

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The top-secret world the government created in response to the terrorist attacks of Sept. 11, 2001, has become so large, so unwieldy and so secretive that no one knows how much money it costs, how many people it employs, how many programs exist within it or exactly how many agencies do the same work.

These are some of the findings of a two-year investigation by The Washington Post that discovered what amounts to an alternative geography of the United States, a Top Secret America hidden from public view and lacking in thorough oversight. After nine years of unprecedented spending and growth, the result is that the system put in place to keep the United States safe is so massive that its effectiveness is impossible to determine.

The investigation’s other findings include:

* Some 1,271 government organizations and 1,931 private companies work on programs related to counterterrorism, homeland security and intelligence in about 10,000 locations across the United States.

* An estimated 854,000 people, nearly 1.5 times as many people as live in Washington, D.C., hold top-secret security clearances.

* In Washington and the surrounding area, 33 building complexes for top-secret intelligence work are under construction or have been built since September 2001. Together they occupy the equivalent of almost three Pentagons or 22 U.S. Capitol buildings – about 17 million square feet of space.

From Secret America in the Washington Post

PBS Frontline report coming this fall

When this article came out there seemed to be just a collective murmur as a response by the masses. I figured that either people just didn’t care, didn’t get it, or were just too stunned to comment about it. Upon reading up some more and seeing the Frontline piece, I have decided that most people just can’t grasp the sheer import of this report. What this all says to me is that the government has no idea of just who is doing what and how much money is being spent. What’s more, the people certainly have no idea (the people as in the voting public) whats really going on either.

Another factor here I think is that many people just have too much faith in the government and in the corporations. When you really look at it though, once you have worked in the sausage factory and have seen how its made, you really never want to eat sausage again. Its like that with working for the government and or corporations really. Having spent all these years in the information security business working for fortune 500 companies as well as the government, I can say I do not want to “Eat the sausage” Of course perhaps the better thing to say is that I do not trust the government nor corporations because they both are comprised of inept people and red tape.

By far though, the concerns that I have are something a bit more ominous in nature. I fear that these machinations will only lead to greater abuses of power by not only the government but also the corporate entities that they have tasked with performing all this secret work. It used to be that there was government oversight on the intelligence community, but you knew that there was some off books things happening. Now, we have post Iraq and still ongoing in Afghanistan, a contractor proxy war that now includes a civilian intelligence element. An element that now seems to be even more “civilian” because it is being operated by corporations and not wings of the government. It gives a new meaning to “black ops”

Another interesting turn in this “secretification” to steal a Bush-ism is the whole issue of just how far the pendulum has swung from the nations not caring so much about HUMINT and intelligence to suddenly being even more fervent about it it seems than they were during the cold war years. I might also hazard a statement to say that since 9/11 it has generally felt more and more like the 50’s again where paranoia is concerned about the “enemy threat to the homeland”

Are we in danger? Yes. Do we need to have to go back to the 50’s mentality of us and them with a McCarthy-esque twist? No.

Of course all or most of this is aimed at Jihadi terrorists and not a governmental body like the Soviet bloc and this is where the disconnect seems to be the largest for me. It’s rather ironic actually that all this effort is being predicated on fighting a group of people who are not generally known for being easily infiltrated nor as easy to get a grasp on as the Sov’s were. People just knee jerked after 9/11 and really, they have only created even more bureaucracy in which the real INTEL will get lost and another attack likely happen because of it.

Welcome to Washington’s dementia…

The Game Is Afoot

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The Justice Department said that Fondren, 62, start providing business consulting advice to a Taiwan-born US citizen called Tai Shen Kuo around February 1998, about two years after he retired from the US Air Force.

Fondren continued the arrangement with his friend even after becoming a civilian employee of the Pacific Command in August 2001, where he held a “top secret” clearance with a classified computer in his cubicle.

Unbeknownst to Fondren, Kuo was working under the direction of a Chinese government official, the affidavit said without identifying the official. Kuo had introduced Fondren to the official in about March 1999, it said.

The official instructed Kuo to mislead Fondren into believing that his information was destined for Taiwanese military officials, it said.

FBI investigating agent Robert Gibbs wrote that wherever Fondren thought the information was ending up, it was clear that he broke US law by “knowingly” handing secrets to “an agent or representative of a foreign government.”

The Rest

Sure, we hear all the time about how the wiley Cinese are hacking our unprotected networks, but little of late have you heard of the old skewl HUMINT being carried out. Well, here you have it. This gambit by the Chinese is interesting in that perhaps this guy was “mislead” into believing that he was helping Taiwan in the process of committing a serious crime against the state. I am unsure that this was a motive, but, he did not make big money from the cutout, so it may well be “a” motivation.

Like I said, the game is afoot, and the Chinese are not the only players here. Don’t forget that the Bear is back too! All too many times people are too focused on the technical side of things since the advent of the firewall. It is no surprise now that many of the attacks in the hacking world actually hinge on social engineering as the human element is the weaker one. There is much to be said about HUMINT being used not only for nation state intelligence gathering but also for corporate espionage.. Which brings me to the next little gem from CICENTRE:

David A. Goldenberg of Oceanside, N.Y., admitted to accessing internal e-mail at Sapphire Marketing LLC in Woodcliff Lake, a regional sales representative for Crestron Electronics in Rockleigh, which makes audiovisual equipment. He worked for Crestron’s rival, Texas-based AMX Corp., at the time.

“He was able to figure out what their default passwords were, which they never changed,” said Brian Lynch, chief of the white-collar crime unit in the Bergen County Prosecutor’s Office.

The Rest

On the one hand this story says “DOH!” they have DEFAULT passwords on KEY SYSTEMS! Gee, who’da thunk it huh? But, this guy really worked it from a social angle too. He inserted himself into the community and worked the folks there to get what he needed. Quite the engineer really.

Moral of the stories? Just don’t focus on the technical.. Just because you have a firewall does not mean that the insider threat is removed from the picture.


Schneier: It’s Time to Drop the ‘Expectation of Privacy’ Test

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In the United States, the concept of “expectation of privacy” matters because it’s the constitutional test, based on the Fourth Amendment, that governs when and how the government can invade your privacy.

Based on the 1967 Katz v. United States Supreme Court decision, this test actually has two parts. First, the government’s action can’t contravene an individual’s subjective expectation of privacy; and second, that expectation of privacy must be one that society in general recognizes as reasonable. That second part isn’t based on anything like polling data; it is more of a normative idea of what level of privacy people should be allowed to expect, given the competing importance of personal privacy on one hand and the government’s interest in public safety on the other.

Full article HERE

The problem is, in today’s information society, that definition test will rapidly leave us with no privacy at all.

Never mind the “definition” of privacy, it is, as Schneier points out, an illusion at this point in time. The technologies that we all love to use also have made that privacy that one might have had eariler a moot point. Face it, Facebook, Twitter, all the social networking that we willingly put out into the internet pretty much nullifies privacy.

I also hasten to add that even if one were trying to keep things private, the internet is not necessarily the place to “keep” them as all systems can be compromised and or turned over to the government after a federal warrant. Of course much of this article also deals with the warrantless wiretapping of not only calls, but also all internet traffic post the Bush administration and the NSA’s back dooring of the Mae’s out there. All your data that you pass through the internet is subject to capture through the NARUS STA 6400 kids. So, there is no privacy there especially if you don’t use any kind of encryption or obfuscation.

I have said it before in other places and I will say it again here:

“There is no privacy whether expected or implied other than that which you make yourself”

In other words,

  • Use encryption that is not easily broken like one time pads.
  • Use obfuscation techniques in language and communications
  • Generally assume that all your comms are being monitored
  • Expect that at any time the government could claim “Exigent Cirucmstances” and seize your equipment
  • Also expect with a recent court decision, that the 5th amendment will no longer protect you

The recent case of a US citizen coming over the border from Canada being forced to provide his hard drive encryption password (which I believe he still has not even with the court order) also shows the erosion of any idea that we have any kind of privacy any more in the world.

So, I say that no matter what the legal eagles say, the power exists for those with the technology, to erase your privacy at any time they wish it. They can do so, as we found out in the Bush administration, at their will and against the laws of the land without any real repurcussions. The electronic genie is out of the bottle.

In the end, you want privacy? Make it yourself.

Written by Krypt3ia

2009/03/29 at 01:40

Economic Warfare: The New World Threat Via Cyberspace

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With the onset of the global economic meltdown I would like to take a bit of time to ponder the possible problems we are going to run into as a country in the near future. I have spouted off before about the issues we are already facing with the rising of the Dragon in the East, but, I would also like to add a few other nation states to that list. Those states are as follows:

The Baltic States: (Russia and Ukraine for now)

Russia: With the re-awakening of the Bear in Russia to their “Cold War” aims the Baltics have figured quietly but prominently in the geopolitical warfare in cyberspace. With the advent of a rather open cyber attack against Georgia by Russia, the Russians have come further our of the digital closet since the old “Moonlight Maze” days of the 90’s. The taking down of the infrastructure in Georgia in coordination of boots on the ground was the first real “application” of full on cyberwar while fighting a ground war. By taking out some of the infrastructure it was harder for Georgia to respond properly to the attack, but, by fuller measures, this attack was but a first try that did not altogether do the job.

However, this incident shows just how much Russia has invested in the idea of cyberwar to augment the usual propaganda and other types of warfare in their arsenal. Now, this new application comes only after they have honed their skills in the spook world of SIGINT and MASINT all the while adding the technological know how to gather more and more INTEL. The bear is armed now with hackers, cyber warriors lets say, who have cut their teeth on not only the US, but also the internet as a whole.


With the spate of new malware packages coming out of the Ukraine, I am suspecting that this satellite of Russia is one of the larger incubators for the Russian cyberwar forces now being used and yet to come. Conficker and it’s progeny (B++ being the latest as of last week) are morphing and gobbling up machines in huge numbers creating a potential competitor to “Storm Worm” for zombie network of the year.

These trojans are getting swifter and swifter at stealing data and beaconing it out to dynamic DNS addresses out there in the interstitial internet sphere. For all the black holing that a company can do, it is increasingly harder to deal with a bot that randomly generates site URL’s to beacon to. For that matter, the latest iteration of Conficker actually does not need to beacon at all, instead it opens up a port and receives a push from its master, in other words a harder target to stop.

Expect to see more out of Ukraine.. More than just another spate of ATM heists too…

The Asiatic States:


Ahh India, the wonderland of the Asiatic digital frontier. A wondrous place where the US has dumped way too much outsource of our important digital work and are only now beginning to wonder if that is a “good thing”… But it’s so CHEAP!

Yeah, cheap and increasingly turning out to be insecure as all get out. If the Satyam incidents don’t set off alarm bells for company’s in the US, I have no clue what will actually wake their dead asses up to the risks they are allowing with their company and client data. Never mind that it’s a country with a border to Pakistan, has some of the same issues of religious extremism, and happens to have a healthy dose of poverty that will enable theft and espionage.. Pay no never mind to that. Oh, and maybe perhaps the whole Mumbai attack thing might be a clue? Yeah..

India lately has become less palatable to the US as an outsource area because of the economic downturn, but only a small bit as the Indians are still so dang cheap! Also, given the recent story that I posted, they are still flavor of the day as H1B visas go. We are still importing many Indian workers like our friend (insert name) who did such a fine job with Fannie Mae’s network.

Where am I going here? Well, lets just ask this question: “How do you know that Pahud is actually Pahud from India and a good guy?“ Are we that trusting of their means of documenting their residents? Given the Mumbai thing, I think not so much. Of course the same case could be made for the US too.. How do I know that Jimmy is really Jimmy and not Bobby Rae, the southern Bible Belt anti abortion, right wing Christian whackadoo bent on destroying our data?

In essence, taking data out of the country that is deemed “sensitive” like personal data, or the creation of programs that handle sensitive data and giving it to places like India is a bad idea period. Alas, we have so many call centers out there don’t we….

Viet Nam:

Long a wild west of copyright infringement, Viet Nam is becoming more of a powerhouse in the area of cyber operations as well as economic warfare in both cyberspace as well as import/export. Even as I write, there are thousands upon thousands of stealth shops with farms of DVD burners cloning movies and software for consumption in the newly digital world.

Since the opening of Viet Nam to trade by the Clinton administration, they have been more and more on the rise economically. We are exporting some fabrication to them as well, bringing in new technologies for them to integrate and use to innovate their own. That’s a good thing, but also perhaps a bad one too. Definitely on the issue of the piracy, they are learning not only from us, but also Russia. Russia used to be the largest piracy spot… They still are, but only just…


An oldie but a goodie. Ni Hao overlords!

Ahh China, what can one say that one hasn’t already in many sundry ways huh? China is a hungry beast that has a plan. Economically they have been a powerhouse for so long. Slowly selling us all of our crap all the while buying our debt. Face it, we are a wholly owned subsidiary of the Chinese government kids.

Add to this that the whole time we have been suckling at the Chinese tit, they have been working toward infiltrating all of our networks and infrastructure. Why? Well, to 0wn us more of course! To be able to pull that plug and have us laying on the ground as they dictate what they desire from us. You see, they want our trade, but they want our trade their way.. Kinda like Walmart!

So, they have honed their cyber skills, built the great Chinese firewall, and taken up the economic and cyber swords to increase their global status. They are a force to be reckoned with but are only recently being noted by the US government and the corporate world here. Of course the corporate world here takes little notice of much because they are usually feeling their own navel instead of paying attention.. But that’s another tirade for another day.

In short, China has a billion people to feed and clothe.. They will do just about anything to compete…


So, what does it all mean? Why did I drag all these disparate countries together here? Because, they are all players in the great game of economics and world domination of course! Well, domination really only applies to China and Russia in this context, but then again, so does the USA huh? Given our last 8 years of empire building I can’t really discount us as a causal factor too.

All of these countries are emerging out of the third world category and into second with aspirations to first. They also have large swaths of populations that are rising. They are hungry, hungry for food, wealth, power, and just the things that we in the west take for granted. As they grow, so too do their needs and wants. All needs and wants that they will try to fulfill in any way they can.

It used to be just a two dimensional picture to many. That picture really consisted of “oil” like the premise of “Three Days Of The Condor” and of course that is a big player still. However, as the tipping point comes on the whole globe for so many types of natural resources, so too will the way wars are waged. No longer can we see one or two dimensionally.

As the economies globally slide further into failure as ours melts down, you will see a spike in cyber warfare, Intelligence Gathering, Industrial Espionage, and general crime from all of these countries and many more. We’ve gone global kids. We laid out the phiber between the continents. We are making inroads even further into new territories with the advent of WAP and One Laptop per Child and as we do so, the more countries will start to gain the technological abilities to wage economic, as well as real “cyber” war against us in a real way.

Yeah, so what? You say…

Well, just how tethered is our economy to our computing capacities? Ummm like two dogs unable to seperate during copulation, thats how…

Lets look at it this way.. How prepared are we? The answer can be found in the hiring on of Melissa Hathaway and her 6 month review of the state of the “Cyber Readiness” of the USA en toto. Not only the governments stance, but also our whole infrastructure. Take it from one on the inside of the trenches for so long..

“We aren’t so healthy”

So far much “Security Theater” has been in the news and played out on the stages of many companies in the states. However, after the theater tent comes down and the wonks have all left the building, the lackadaisical corporate behemoths go back to feeling their navels and taking ever bigger bonus’ home for being absolute failures at security.

We are ripe for the taking and no one is at the helm. No one has been at the helm for some time now in fact… I mean, can you name a cyber tsar that lasted in the position longer than just scant months? I can’t and I doubt many of you can. So, why did they all cut and run? Because they could not affect change. The government up until now has been unable to focus their attention never mind ours collectively on the dangers involved. Humans I have found, are generally unable to detect and deter long range danger so well. Fight or flight yes… Long term Chinese or Russian plans.. Not so much. Just look at all the machinations provided to us post 9/11 and you will see what I mean…

“What do you mean I can’t have a couple ounces of liquid or gel in my carry on!?”

OOOH that’s making me feel sooo secure!

So how do we fix it?

Well, really I don’t know that we can unless we have a “Cyber Pearl Harbor” really. Say those blackouts we had back in 03 were actually the doing of China, or for that matter a “home grown” threat, we would see some quick action! Ok upon reflection it would likely be a Chinese Fire Drill instead of substantive corrective action I think. Ya know, like taking off your shoes at the airport post one noodnick trying to light his shoe on fire. Yeah, that did a lot to make us safer DHS and TSA!

I think what I am trying to say here is this; We need to be able to admit we have a problem like we are at a collective AA meeting.

“Hi, I am America and I am terrible at information security”

“Hi America…”

They say it is the first step to a cure that admission. Well, we need to really have a mea culpa as a society and then start to work on fixing that issue. I believe that Melissa’s first job is to assess, and then she will need to impart in a most forceful way, that we are rather fucked where our infrastructure is concerned. Then, she needs to give Big O’ the marching orders to sign PDD’s to FORCE corporations, and the government to protect their data “with due diligence” AND to audit them with consequences for failure.

I have said it before at client sites and I will say it here. Security procedures and policies will only be effective and instituted when there is “buy in” from the top down. Unless we get some real direction and orders from the Prez, there will be no change. China and others will keep stealing us blind, and our economy will falter even further. Unless we take the necessary steps to protect our data we can expect to lose the economic Stratego game with or without the “stimulus”.


NSA may get more cybersecurity duties

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U.S. spy agency may get more cybersecurity duties
Thu Feb 26, 2009 1:20am GMT

By Randall Mikkelsen

WASHINGTON, Feb 25 (Reuters) – The spy agency that ran the Bush administration’s warrantless eavesdropping program may get more responsibility for securing U.S. computer networks, President Barack Obama’s intelligence chief told Congress on Wednesday.

Director of National Intelligence Admiral Dennis Blair said the National Security Agency, which is responsible for codebreaking and electronic spying, should assume a greater role in cybersecurity because of its technological prowess and current role in detecting attacks.

“There are some wizards out there … who can do stuff. I think that capability should be harnessed and built on,” Blair said in testimony to the House of Representatives intelligence committee.

Blair acknowledged that many Americans distrust the agency, which operated former President George W. Bush’s secret program of warrantless electronic spying on some Americans’ overseas phone calls.

“The NSA is both intelligence and military, two strikes out in terms of the way some Americans think about a body that ought to be protecting their privacy and civil liberties,” Blair said.

Government concern over computer network vulnerability has risen as computer hackers become more sophisticated.

“A number of nations, including Russia and China, can disrupt elements of the U.S. information infrastructure,” Blair said. “Cyber-defense is not a one-time fix; it requires a continual investment.”

Billions of dollars are at stake. Defense contractors Northrop Grumman Corp (NOC.N: Quote, Profile, Research), Lockheed Martin (LMT.N: Quote, Profile, Research) and Boeing Co (BA.N: Quote, Profile, Research) are working on classified cybersecurity projects for the U.S. government.

Software and telecommunications companies also are likely to play a major role, said Democratic Representative Dutch Ruppersberger, whose Maryland district includes the NSA.

Earlier this month, President Barack Obama ordered a 60-day cybersecurity review and named Melissa Hathaway, the top cyber official with the intelligence director’s office, to a White House post overseeing the effort.

Some lawmakers have said the Homeland Security Department, which plays a leading role in U.S. computer security and is incharge of protecting federal civilian networks, is not up to the job.

Blair said he agreed: “The National Security Agency has the greatest repository of cyber talent.”

“They’re the ones who know best about what’s coming back at us, and it is defenses against those sorts of things that we need to be able to build into wider and wider circles.”

I posited this back a while ago and got some angry replies from folks. I agree, the watchers need watching but, we really need the help here.. I am willing to let the NSA (with supervision) do the job

Written by Krypt3ia

2009/02/27 at 15:44

CIA Spy Enlisted Son to Collect Espionage Debts, Feds Say

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The son of a disgraced CIA agent convicted of funneling classified information to the Russians was indicted Thursday on allegations of helping his imprisoned father collect overdue bills for his dad’s nefarious activities.

The son, Nathaniel James Nicholson of Eugene, Oregon, traveled throughout the world using coded e-mail messages to plot meeting locations with the Russians, and received tens of thousands of dollars on behalf of his convicted spy father, Harold James Nicholson, according to an indictment unsealed Thursday.

The father, nicknamed “Batman,” is serving 23 years after pleading guilty a decade ago to furnishing the Russians “documents, photographic negatives and information relating to the national defense of the United States, with the intent and reason to believe that the same would be used to the injury of the United States and to the advantage of the Russian Federation,” according to an FBI affidavit (.pdf). As part of the agent’s plea deal, the 58-year-old admitted that, during his 16-year tenure, he received $300,000 from the Russian Federation for supplying the identity of CIA operatives in Moscow, including their code names.

In 2006, according to court records and the FBI, the father enlisted his 24-year-old son, the youngest of three children, to collect his unpaid bills from the Russians. The son flew from Portland, Oregon, to numerous destinations, including San Francisco, Mexico City, Peru and Cyprus — bringing back tens of thousands of dollars in greenbacks. The money was dispersed to family members, according to court documents.

At one point, according to the authorities, the son returned to the United States from Peru in possession of a small notebook containing “clandestine communication instructions” on how to communicate in code via an internet e-mail account about future meetings with the Russians.

“The notebook also contained coded messages to be used by defendant Nathaniel James Nicholson when he met with the Russian Federation to confirm his identity,” according to court documents (.pdf).

Here is one of the coded messages the son, a pizza worker and community college student, is accused of sending to the Russians to confirm a Dec. 10, 2008, meeting at a TGI Friday’s in Cyprus:

Hello Sweety! How are you? I’m good. Sorry for taking so long to write to you…you know how work is and all. Any7ways, things are good. It looks like I will still be able to go on that vacation! I will keep you updated on that though. I am very much looking forward to it, and to seeing you again! Well hon, I just thought I’d say “hi” since I had the time!

The authorities became suspicious after an inmate at the federal penitentiary in Sheridan, Oregon, tipped off the authorities that the convicted CIA agent was trying to contact the Russians. The authorities began to eavesdrop on the son’s cellphone, internet searches and e-mail, court records show. The son often visited his father in prison, the records say.

The son, charged with seven counts of money laundering and espionage-related charges, was expected to appear today in a Portland federal court. The father also faces similar accusations.

CoB’s Thoughts

The one thing about the Russians was and “is” they always paid their debts to spies. Sure, they often used “Swallows” to entrap and blackmail prospective assets, but, if you were a walk in or initiated the contact, you would be paid. This case also goes to show that this guy worked for 16 years giving up secrets including our assets in Moscow. Just how he was not detected is a mystery to me as I am sure there were a slew of round ups in Russia post his passing the data.

Now, I am interested in the coded messages. I would like to take a peek at the rest of these emails. They must be using code words and not so much “codes” within the text in the sense of conventional codes. I in fact bolded and changed the font color of the “any7ways” as it was a stand out. In checking the keyboard layout as I type the word, it is not so easily mistyped to have a 7 in there so I think perhaps it was a key.

Well, the family that spies together…. Ends up in Federal pound me in the ass prison…

Harold James Nicholson Wikipedia entry

Written by Krypt3ia

2009/02/01 at 04:02