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Belgians Check Info Diamond Heist Might be Bigger
Associated Press (06/13/13) Casert, Raf
Belgian authorities announced June 13 that they were conducting a probe into whether the thieves who carried out the diamond heist at Brussels airport in February stole more than the $50 million worth of diamonds that was first reported. Several leads for the investigation have lead to Morocco, and Belgian authorities have noted that Moroccan investigators suggested that the total value of the diamonds was closer to $400 million. However, Antwerp World Diamond Center spokeswoman Caroline De Wolf dismissed the idea that the thieves' take was worth more than the reported $50 million. De Wold said the $50 million figure was confirmed the day of the theft by police, transporters, insurance companies, and customs officials. If the amount of diamonds was larger than reported, it could raise questions of whether the diamonds were being illicitly transported for commercial gain. Seven suspects in the theft are in jail in Belgium, while another who has been linked to Morocco is in jail in France. Report suggest that the stolen diamonds may have ended up in Morocco and Switzerland.
Lancaster Co. Woman Accused of Shoplifting $1.5M From Hobby Lobby Stores
The State (SC) (06/13/13) McFadden, Jonathan
A South Carolina woman was arrested and charged with shoplifting on June 12 for allegedly stealing at least $1.5 million worth of items from three Hobby Lobby stores in North Carolina. Maria Steele was arrested after she was caught stuffing oil paints and scrapbooking items into a black bag at the Hobby Lobby store in Rock Hill, S.C. After Steele was arrested in Rock Hill, it was determined that she was wanted for thefts from other Hobby Lobby stores as well. Rock Hill Police Officer Michael Reid said that Steele may have taken hundreds of trips at least "once or twice a week" to Hobby Lobby stores, allegedly stealing "high-dollar" arts and crafts merchandise without being caught. She allegedly sold the stolen items on eBay for 75 percent below retail with the help of her three adult children. During the bond hearing on June 13 in Rock Hill, Steele was informed that as a condition of her bond she is forbidden to enter any Hobby Lobby store either now or in the future.
Confronting Copper Theft
Security Director News (06/12/13) Kothe, Leif
PPL Electric Utilities in Allentown, Pa., is taking a three-pronged approach to prevent additional thefts of copper wiring from its electrical substations in the central and eastern portions of the Keystone State. PPL's senior manager of corporate security, John Kalafut, would not divulge the specific security measures the company is using to prevent thefts like the ones that have taken place in the last several weeks, but he said that the first part his company's approach to preventing copper wire theft involves working with scrap and salvage yards to identify possible thieves. As part of this effort, PPL runs a database of scrap metal dealers in its service territory and asks them to be on the lookout for potential thieves after thefts have taken place. PPL has also started painting its utility wires certain colors so that scrap dealers can identify thieves more easily. If someone brings in copper wiring that is painted one of those colors, Kalafut said, it is a sure sign that the wiring was stolen from PPL's equipment. The second part of PPL's approach involves its external affairs team lobbying lawmakers in Harrisburg to pass laws that would mandate tougher penalties for scrap metal thieves. Finally, Kalafut said that PPL is working to educate the public about the risks of stealing copper wiring from electrical substations. Such thefts have resulted in deaths in the past, though none have taken place in PPL's service territory.
Two Companies Accused of Discrimination in Hiring
Washington Post (06/12/13) Mui, Ylan Q.
The Equal Employment Opportunity Commission (EEOC) filed suit on June 11 against BMW and Dollar General for allegedly discriminating against black workers using criminal background checks. BMW, for its part, allegedly fired 70 African American workers because they had criminal histories, even though many of them had already been working at their South Carolina plant for years. Dollar General (DG), meanwhile, rescinded job offers for two black women after conducting criminal background checks. It appears that the records for one woman were inaccurate, but Dollar General did not change its decision. Both Dollar General and BMW have denied allegations of discrimination, saying they complied with all laws. The EEOC agreed that employers are allowed to use background checks, but contested that the companies' practices of not hiring anyone with a criminal record is discriminatory against African-Americans. Seven states appear to agree with the EEOC, passing laws that bar employers from asking questions about criminal background history.
A Wake-Up Call for Booz Allen and Us
Wall Street Journal (06/11/13) Bussey, John
Government contractors have much they can learn from the recent release of information on classified National Security Administration (NSA) programs by former Booz Allen Hamilton employee Edward Snowden. Both government agencies and private contractors see Snowden as emblematic of a major liability associated with hiring private employees to handle intelligence analysis. Booz Allen is just one of many companies that contracts with the NSA and other intelligence agencies, a situation that prompted the Senate in 2011 to wonder whether the U.S. intelligence system was too reliant on contractors. Those concerns are highly likely to resurface in the wake of the NSA scandal. Booze Allen has denounced Snowden's actions, but it too is likely to face questions about whether or not it could have prevented the disclosures. These questions are not likely to stop at Snowden, as intelligence officials will likely wonder about larger security gaps as well as if intelligence information could be kept more secure by removing contractors from the equation entirely.
NSA to Release Details of Attacks it Claims Were Foiled by Surveillance
Guardian (United Kingdom) (06/13/13) Ackerman, Spencer
National Security Agency (NSA) Director General Keith Alexander reportedly promised the Senate Intelligence Committee on June 13 that his agency will provide proof that its widespread surveillance collection programs helped stop terrorist attacks. Alexander said that the information would be provided as early as Monday. These assurances follow fierce criticism of NSA surveillance by two members of the intelligence committee. Following a briefing by NSA officials, Senate Intelligence Chair Dianne Feinstein (D-Calif.) also provided more information on the programs, reporting that the NSA can search its databases for individual information but that it must get a court order to access the content of any messages. While that is the current situation, Feinstein said Director of National Intelligence James Clapper has been charged with reviewing the programs and presenting potential changes. She did say she expects legislation to prevent access of classified information by private employees like Edward Snowden, the Booze Allen contractor who initially leaked information on the program.
NSA Won't Jettison Contractors, Yet
Bank Info Security (06/13/2013) Chabrow, Eric
National Security Agency (NSA) Director Gen. Keith Alexander testified during a Senate hearing on June 12 and said nothing that would indicate that the spy agency intends to stop using contractors in sensitive IT positions to prevent a leak similar to the one carried out by former Booz Allen Hamilton contractor Edward Snowden. However, he did say that the Defense Department will be examining the oversight mechanisms that are in place to prevent people from accessing information they do not have authorization to see. Contractors are heavily relied on in many fields especially when a federal agency does not have the expertise needed or the available staff to meet organizational needs. They face the same security clearance processes as federal employees, and are required to take an oath not to disclose government and military secrets. Alexander said the leak has jeopardized security, saying "There is no doubt in my mind that we will lose capabilities as a result of this, and not only the United States but those allies that we have helped will no longer be as safe as they were two weeks ago."
‘Whitey’ Bulger Investigator Grilled by Defense
Boston Globe (06/13/13) Murphy, Shelley ; Valencia, Milton J.
Retired Massachusetts State Police Col. Thomas J. Foley took the stand in the trial of James "Whitey" Bulger on Thursday and discussed the corrupt relationship that the South Boston gangster allegedly had with the FBI. Foley, who started the investigation that led to the charges Bulger now faces, said that his efforts to target Bulger--who is believed to have been an FBI informant--were constantly being foiled by FBI agents. He added that the "sordid" relationship between Bulger and agents at the bureau prevented law enforcement officers from carrying out their investigations, forcing them to rely on a hit man and other shady individuals to build a case against Bulger and expose the corruption at the FBI. Attorneys for Bulger argued during cross-examination of Foley that the corruption at the FBI casts serious doubt on the bureau's claims that Bulger was an informant. Foley responded by saying that he had seen Bulger's informant file himself, though he conceded that the reports in the file that were written by retired FBI agent John J. Connolly Jr.--who is in prison for a killing allegedly planned by Bulger and his associates--may have contained false information. However, Foley also said that other agents had filed informant reports on Bulger as well.
Investigators Looking Into How Snowden Gained Access at NSA
Washington Post (06/11/13) Finn, Peter; Miller, Greg; Nakashima, Ellen
Investigators are trying to determine how Edward J. Snowden was able to leak secret documents about the National Security Agency's surveillance programs to the media as he has confessed to doing. One of the questions that investigators hope to answer is how Snowden, who worked for as a contract employee at an NSA Threat Operations Center in Hawaii, was able to obtain a copy of the Foreign Intelligence Surveillance Court order that was leaked to The Guardian. Such a document would have been highly classified and would have been of little use to someone working as a systems administrator, as Snowden was. A senior U.S. intelligence official speaking on condition of anonymity also said that investigators are working with NSA and others in the intelligence community to determine what information Snowden had access to and how he was able to leak it to The Guardian and The Washington Post. Meanwhile, officials in the Obama administration are trying to confirm that Snowden did indeed leak the documents. Although Snowden has confessed to being responsible for the leak, some officials have said that the claims he made in an interview--including his assertions that he could order wiretaps on anyone, even the president, and access any CIA station across the globe--seem to be exaggerated or downright false. It is also unclear whether anyone else was involved in the leak.
Edward Snowden Comes Forward as Source of NSA Leaks
Washington Post (06/10/13) Gellman, Barton; Blake, Aaron; Miller, Greg
An employee for the consulting firm Booz Allen Hamilton admitted Sunday to providing two newspapers with secret documents about the National Security Agency's previously undisclosed surveillance programs. Edward Snowden, a tech specialist who contracted for the NSA who is also a former undercover CIA employee, said that he gave the documents to The Washington Post and Britain's Guardian newspaper because he was upset about what he said was the systematic surveillance of law-abiding citizens. Snowden has said that no one was aware of his decision to leak the documents to the media, and added that there was not one event that prompted him to do so. However, Snowden criticized President Obama for not making good on campaign pledges to make his administration transparent. Snowden, who was reportedly working at a Booz Allen Hamilton office in Hawaii, has fled to Hong Kong but could be extradited back to the U.S. to be prosecuted. Meanwhile, a number of current and former U.S. intelligence officials said that Snowden's admission that he was the primary source of the information about the federal government's surveillance programs could prompt both the CIA and the NSA to reexamine their security measures. The CIA, for example, could reexamine the steps it takes to screen job candidates to ensure that such leaks do not take place again in the future. In addition, both the CIA and the NSA could take another look at their relationship with contractors such as Booz Allen Hamilton.
Patients Put at Risk by Computer Viruses
Wall Street Journal (06/14/13) Weaver, Christopher
The U.S. Food and Drug Administration (FDA) is cautioning medical device makers that computer viruses are threatening to infect their equipment and place patients at risk. The FDA for the first time advised manufacturers to submit security plans to thwart cyberattacks when seeking approval for their products, and also recommended that hospitals practice more vigilance in reporting cybersecurity failures. Previously undisclosed Department of Veterans Affairs records estimate that malware infected at least 327 devices at VA hospitals since 2009, while more than 40 viruses contaminated equipment such as x-ray machines and lab gear made by companies such as General Electric, Siemens and Philips. Experts say such failures highlight vulnerabilities created in the scramble to digitize healthcare, which has led to an interconnected mesh of devices linked to hospital networks, which are in turn connected to the Internet. Such episodes also expose the problem of some device manufacturers' reluctance to admit to the existence of security gaps or assume the expensive job of designing more secure products. Device makers claim they cooperate with hospitals to fight computer infections and some have organized expert teams to respond to incidents.
NSA Hacks China, Leaker Snowden Claims
CNN (06/13/13) Mullen, Jethro; Carter, Chelsea J.
Edward Snowden, who leaked information on National Security Administration (NSA) surveillance programs to the press, now claims that the NSA hacks the computer networks of China and other countries. Snowden said that the NSA targets hundreds of computers in China, including those at the Chinese University of Hong Kong, public officials, and students. Snowden says that the NSA cracks high-bandwidth data connections to gain access to hundreds of thousands of computers at a time. He provided some documentation supporting his claims, but the authenticity of those documents has not been verified. Snowden's claims that the U.S. is engaging in offensive cyberattacks against Chinese targets come several days after President Obama asked Chinese President Xi Jinping to put a stop to alleged attempts to hack U.S. targets. China claims that it is the United States doing most of the cyberattacking, an argument that Snowden's story seems to support.
Chase, Citigroup Among Banks Reportedly Hacked in $15-Million Heist
Chicago Tribune (06/13/13) Dave, Paresh
Federal officials have announced the arrest of four of the eight individuals who are believed to have been involved in a two-year scheme to steal at least $15 million from customer accounts at 15 financial institutions. Officials say that the suspects were able to obtain the login information of the affected accounts, including the accounts of more than 130 Automated Data Processing customers and at least 40 JPMorgan Chase customers, to access the accounts online and transfer funds to prepaid debit cards. Once the funds were loaded onto the prepaid cards, the suspects allegedly used them throughout the U.S. to make ATM cash withdrawals or purchases. The suspects also allegedly stole the identities of the victims so that they could put the prepaid debit cards in their names and file fraudulent tax returns in order to obtain refunds.
Botnets Increase Use of Peer-to-Peer by Fivefold to Hamper Takedowns
eWeek (06/11/13) Lemos, Robert
A trio of major botnets—ZeroAccess, Zeus Gameover, and TDL4/TDSS—are among those that have adopted the use of peer-to-peer communications to thwart takedown efforts, according to Damballa. The company found that the number of malware variants that use peer-to-peer have increased by a factor of five over the past year. Peer-to-peer networking lets network nodes communicate by transmitting data to a list of known peers, which in turn send the information to other compromised machines until the message reaches the controller's system. Since there is no central server that controls each node directly, a peer-to-peer network is bolstered against attack. Because infected systems, particularly laptops, move outside company-owned networks, security professionals can no longer just block peer-to-peer communications to avoid attacks, Damballa says. Rather, companies must be able to detect such systems in their network, shut them down, and conduct an investigation, if possible.
Obama Orders U.S. Intelligence to Develop a List of Targets for U.S. Cyberattacks
Homeland Security News Wire (06/10/13)
Press reports indicate that President Obama issued a classified executive order in October 2012 requiring the secretary of defense, the director of national intelligence, and the CIA director to assemble a list of foreign cyberattack targets. The order was part of a larger package of instructions for cybersecurity, some of which has already been declassified. This information, however, was provided to the U.K.-based publication The Guardian by an unnamed U.S. official. According to the Guardian account, presidential approval would be required for all attacks that could cause a loss of life, property damage, severe retaliation, foreign policy changes, or economic consequences. The directive puts in place processes for working cyberattacks and defense into current national security procedures. These processes instruct intelligence agencies on how to plan operations and further develop U.S. cybersecurity capabilities. In its response to questions from The Guardian, the National Security Agency (NSA) says that while the orders do put in place the groundwork for offensive operations, the directive calls on agencies to "prioritize network defense." The NSA also reports that the directive requires all operations to work within the bounds of the Constitution and "other applicable law and policies."
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