Los Angeles Times

HACKERS BREAK INTO FEDERAL TARGETS

Experts suspect Russia may be culprit behind ‘ impactful’ attacks on Treasury, Commerce and other networks.

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WASHINGTON — Hackers broke into the networks of federal agencies including the Treasury and Commerce department­s in attacks revealed just days after U. S. officials warned that cyber actors linked to the Russian government were exploiting vulnerabil­ities to target sensitive data.

The hacks on the networks of the Treasury and Commerce department­s are part of a months- long global cyberespio­nage campaign revealed Sunday, just days after the prominent cybersecur­ity f irm FireEye said it had been breached in an attack that industry experts said bore the hallmarks of Russian tradecraft.

The FBI and the Department of Homeland Security’s cybersecur­ity arm are investigat­ing what experts and former officials said appeared to be a large- scale penetratio­n of U. S. government agencies — apparently the same cyberespio­nage campaign that also aff licted FireEye, foreign government­s and major corporatio­ns.

“This can turn into one of

the most impactful espionage campaigns on record,” cybersecur­ity expert Dmitri Alperovitc­h said.

News of the hacks, f irst reported by Reuters, came less than a week after FireEye disclosed that foreign government hackers had broken into its network and stolen the company’s own hacking tools. Many experts suspect Russia is responsibl­e. FireEye’s customers include federal, state and local government­s and top global corporatio­ns.

The apparent conduit for the Treasury and Commerce hacks — and the FireEye compromise — is a hugely popular piece of server software called SolarWinds. It is used by hundreds of thousands of organizati­ons globally, including most Fortune 500 companies and multiple U. S. government agencies that will now be scrambling to patch up their networks, said Alperovitc­h, the former chief technical officer of the cybersecur­ity f irm CrowdStrik­e.

FireEye, without naming any specific targets, said in a blog post that its investigat­ion into the hack of its network had identified “a global campaign” targeting government­s and the private sector that, beginning in the spring, had slipped malware into a SolarWinds software update. Neither the company nor U. S. government officials would say whether they believed Russian statebacke­d hackers were responsibl­e.

The malware gave the hackers remote access to victims’ networks, and Alperovitc­h said SolarWinds grants “God- mode” access to a network, making everything visible.

“We anticipate this will be a very large event when all the informatio­n comes to light,” said John Hultquist, director of threat analysis at FireEye. “The actor is operating stealthily, but we are certainly still finding targets that they manage to operate in.”

FireEye said it had conf irmed infections in North America, Europe, Asia and the Middle East, including in the healthcare and oil and gas industry — and had been informing affected customers around the world in the last few days. It said that malware that rode the SolarWinds update did not seed self- propagatin­g malware — such as the 2016 NotPetya malware blamed on Russia that caused more than $ 10 billion in damage globally — and that any actual infiltrati­on of an infected organizati­on required “meticulous planning and manual interactio­n.”

That means it’s a good bet only a subset of infected organizati­ons were being spied on by the hackers. Nation- states have their cyberespio­nage priorities, which include COVID- 19 vaccine developmen­t.

Cybersecur­ity experts said last week that they considered Russian state hackers to be the main suspect in the FireEye hack.

In a post on its Facebook page Sunday, Russia’s U. S. embassy described as “unfounded” the “attempts of the U. S. media to blame Russia for hacker attacks on U. S. government­al bodies.”

Earlier, National Security Council spokespers­on John Ullyot said in a statement that the government was “taking all necessary steps to identify and remedy any possible issues related to this situation.”

On its website, SolarWinds says it has 300,000 customers worldwide, including all f ive branches of the U. S. military, the Pentagon, the State Department, NASA, the National Security Agency, the Department of Justice and the White House.

It says the 10 leading U. S. telecommun­ications companies are also among customers.

The U. S. government’s Cybersecur­ity and Infrastruc­ture Security Agency said it was working with other agencies to help “identify and mitigate any potential compromise­s.”

President Trump last month f ired the director of CISA, Chris Krebs, after Krebs vouched for the integrity of the presidenti­al election and disputed Trump’s claims of widespread electoral fraud.

In a tweet Sunday, Krebs said “hacks of this type take exceptiona­l tradecraft and time.”

Federal government agencies have long been targets of foreign hackers.

Hackers linked to Russia were able to break into the State Department’s email system in 2014, infecting it so thoroughly that it had to be cut off from the internet while experts worked to eliminate the infestatio­n.

The intrusions disclosed Sunday included the Commerce Department’s agency responsibl­e for internet and telecommun­ications policy.

Treasury deferred comment to the National Security Council. A Commerce spokespers­on confirmed a “breach in one of our bureaus” and said, “We have asked CISA and the FBI to investigat­e.” The FBI said it was engaged in a response but declined to comment further.

SolarWinds, based in Austin, Texas, confirmed Sunday a “potential vulnerabil­ity” related to updates released between March and June for software products called Orion that help monitor networks for problems.

SolarWinds Chief Executive Kevin Thompson said in a statement that the company was working with the FBI, FireEye and intelligen­ce community.

FireEye announced Tuesday that it had been hacked, saying foreign state hackers with “world- class capabiliti­es” broke into its network and stole tools it uses to probe the defenses of its thousands of customers. The hackers “primarily sought informatio­n related to certain government customers,” CEO Kevin Mandia said in a statement, without naming them.

 ?? THE HACK Patrick Semansky Associated Press ?? of the Treasury Department was revealed days after cybersecur­ity company FireEye said intruders had stolen hacking tools from its network.
THE HACK Patrick Semansky Associated Press of the Treasury Department was revealed days after cybersecur­ity company FireEye said intruders had stolen hacking tools from its network.

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