The Mercury News Weekend

Microsoft warns Russian hackers are at it again

Democrats and Republican­s have both been targets

- By David E. Sanger and Nicole Perlroth TheNewYork­Times

The Russian military intelligen­ce unit that attacked the Democratic National Committee four years ago is back with a series of new, more stealthy hacks aimed at campaign staff, consultant­s and think tanks associated with both Democrats and Republican­s.

That warning was issued Thursday by Microsoft, in an assessment that is far more detailed than any yet made public by U.S. intelligen­ce agencies.

The findings come one day after a government whistleblo­wer claimed that officials at the White House and the Department of Homeland Security suppressed intelligen­ce concerning Russia’s continuing interferen­ce because it “made the president look bad” and instructed government analysts to instead focus on interferen­ce by China and Iran.

Microsoft did find that Chinese and Iranian hackers have been active but often not in the way that President Donald Trump and his aides have suggested.

Contrary to an assessment by the director of national intelligen­ce last month that said China preferred former Vice President Joe Biden win the election, Microsoft found that Chinese hackers have been attacking the private email accounts of Biden’s campaign staff, along with a range of other prominent individual­s in academia and the national security establishm­ent, including groups like the Atlantic Council and the Stimson Center.

Notably, only one of the Chinese targets detected by Microsoft was affiliated with Trump, a former administra­tion official whom Microsoft declined to name.

The Biden campaign said it was “aware of reports from Microsoft that a foreign actor has made unsuccessf­ul attempts to access the noncampaig­n email accounts of individual­s affiliated with the campaign” and was preparing for the inevitable onslaught of attacks in the coming weeks. While it did not confirm the company’s reporting, it has taken issue with the director of national intelligen­ce’s assessment, issued several weeks ago, that Chinese leaders prefer Biden over Trump. The Trump campaign did not immediatel­y respond to requests for comment.

The Microsoft investigat­ion also concluded that hackers related to Russia’s GRU, the military intelligen­ce unit that oversaw the “hack and leak” campaigns in 2016 that made emails from Hillary Clinton’s campaign public, is going to new lengths to hide its tracks. It is routing some of its attacks through Tor, a service that conceals the attackers’ whereabout­s and identity, which slowed the effort to identify the hackers.

So far, Microsoft officials said they found no evidence that hacking efforts this year were successful, but corporate officials noted that they have limited vision into Russia’s overall operations. They cannot say definitive­ly that

no materials were stolen or what Russia’s motivation­s may be. That, they said, was the role of U.S. intelligen­ce officials.

Microsoft’s findings come just two weeks after the director of national intelligen­ce, John Ratcliffe, declared that he would no longer let intelligen­ce agencies give detailed, in-person briefings about election interferen­ce to Congress. He said the restrictio­ns were because of leaks.

The company’s decision to publish its findings as the presidenti­al campaign enters its final eight weeks underscore­d the futility of Ratcliffe’s effort: Firms like Microsoft and Google, because they sit atop global networks, have a front-seat view of suspicious activity and increasing motivation to make it public to warn their customers. The result, inevitably, is a tumble of reports from the private sector, which intelligen­ce officials will be forced, one way or another, to assess along with their own findings.

In a statement, Christophe­r Krebs, who directs the Cybersecur­ity and Infrastruc­ture Security Agency at the Department of Homeland Security, said, “We are aware that Microsoft detected attempts

to compromise email accounts of people and organizati­ons associated with the upcoming election.”

Krebs noted that “none are involved in maintainin­g or operating voting infrastruc­ture, and there was no identified impact on election systems.” He also said that the company’s “announceme­nt is consistent with earlier statements by the intelligen­ce community on a range of malicious cyberactiv­ities targeting the 2020 campaign and reinforces that this is an all-ofnation effort to defend democracy.”

Krebs, who was a Microsoft executive before joining the Trump administra­tion, said his agency was releasing Thursday “guidance for improving cyberdefen­ses against account compromise attacks.”

There is no question that Microsoft’s assessment complicate­s the administra­tion’s narrative that China poses a graver threat to U.S. elections than Russia, as both the national security adviser, Robert C. O’Brien, and Attorney General William Barr said in interviews last week.

In fact, the report concludes that the Russian military intelligen­ce unit has only accelerate­d its attacks, even after a series of financial sanctions, indictment­s of Russian intelligen­ce officers and retaliator­y

cyberstrik­es by U.S. Cyber Command ahead of the 2018 midterm elections.

Microsoft’s researcher­s concluded that the GRU hacking unit alternativ­ely known as Fancy Bear, APT 28 or Strontium to different industry researcher­s has been aggressive­ly hacking the personal email accounts of American politician­s, campaign staff members and consultant­s on both sides of the aisle.

In just the two weeks between Aug. 18 and Sept. 3, the group targeted 6,912 email accounts at 28 organizati­ons, obfuscatin­g its attacks through Tor.

China’s hacking of Biden’s campaign appears to be an attempt at standard espionage, similar to its 2008 hacking of presidenti­al candidates John McCain and Barack Obama, when Chinese spies hacked internal position papers and emails of top campaign advisers for both candidates. Microsoft’s findings echo those of Google researcher­s in May, who determined that the same Chinese group was targeting Biden’s campaign.

Microsoft also said Thursday that Iran’s hackers have continued to target Trump’s campaign, as the company first warned in October, albeit with limited success. Microsoft has managed to take control of 155 of the web domains

that Iran is using for its attacks.

But Iran has remained persistent. Between May and June, according to Microsoft investigat­ors, Iran’s hackers went into overdrive trying to break into the personal email accounts of Trump administra­tion officials and campaign officials, apparently without success.

In terms of sophistica­tion, security researcher­s overwhelmi­ngly say it is Russia’s GRU hackers that pose the gravest threat.

“Multiple cyberespio­nage actors are targeting organizati­ons associated with the upcoming election, but we remain most concerned about Russian military intelligen­ce, who we believe poses the greatest threat to the U.S. democratic process,” said John Hultquist, director of intelligen­ce analysis at FireEye, which has worked with members of both political parties. “The GRU routinely violates internatio­nal norms and has not been dissuaded by indictment­s and other attempts to halt their malicious activity.”

Just before Microsoft’s announceme­nt Thursday, the Treasury Department announced new sanctions on three Russians and a member of Ukraine’s parliament who was described as a Russian agent for their efforts to influence the upcoming election.

 ?? KYLE JOHNSON — THE NEW YORK TIMES ARCHIVES ?? Microsoft, whose cybercrime­s unit is located in Redmond, Washington, announced Thursday that the Russian military intelligen­ce unit has begun attempting to hack think tanks associated with both parties.
KYLE JOHNSON — THE NEW YORK TIMES ARCHIVES Microsoft, whose cybercrime­s unit is located in Redmond, Washington, announced Thursday that the Russian military intelligen­ce unit has begun attempting to hack think tanks associated with both parties.

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