Bloomberg Businessweek (North America)

In the sequel to Hillary’s e-mail scandal, Russian hackers go after the Clinton Foundation

▶ A newly discovered hack may lead to public data dumps ▶ “The end result is a weaker president once elected”

- -Michael Riley and Jordan Robertson, with Carol Matlack Edited by Allison Hoffman Bloomberg.com

Before the Democratic National Committee disclosed a major computer breach in mid-june, U.S. officials had informed both political parties and the presidenti­al campaigns of Hillary Clinton, Bernie Sanders, and Donald Trump that hackers were attempting to penetrate their computers, according to a person familiar with the government investigat­ion. In fact, says another person familiar with the probe, from October 2015 through mid-may, the hackers targeted at least 4,000 individual­s, many involved in presidenti­al politics, including party aides, advisers, think tanks, and lawyers.

The government found the hackers, suspected by investigat­ors to have links to the Russian state security apparatus, also succeeded in breaching systems belonging to the Clinton Foundation, as recently as mid-june, three people familiar with the matter say. Foundation officials say the organizati­on has no evidence its systems were compromise­d and hasn’t been notified by law enforcemen­t.

The hacks set the stage for what could be a Washington remake of the public shaming that shook Sony in 2014, when thousands of internal e-mails filled with casual gossip about world leaders and Hollywood stars were made public. A hacker (or group of hackers) calling himself Guccifer 2.0 has already posted documents purportedl­y from the DNC, including what he said was a list of donors who had made large contributi­ons to the Clinton Foundation. Guccifer 2.0 publicly threatened to release thousands of internal memos and other documents.

A Clinton campaign spokesman, Glen Caplin, says he can’t comment on government briefings about cybersecur­ity but that the campaign had no evidence that its systems were compromise­d. “What appears evident is that the Russian groups responsibl­e for

the DNC hack are intent on attempting to influence the outcome of this election,” he says. The DNC said in a statement that it believes the leaks are “part of a disinforma­tion campaign by the Russians.” Dmitry Peskov, a spokesman for President Vladimir Putin, denies the Russian government was involved.

Trump spokeswoma­n Hope Hicks didn’t respond to e-mails seeking comment; neither did the Republican National Committee. A Sanders spokesman, Michael Briggs, says he wasn’t aware of the warnings.

The U.S. Secret Service, the FBI, and the National Security Agency are all involved in the investigat­ion; none of the agencies have made statements about the inquiry. The FBI has kept its investigat­ion separate from the review of Clinton’s use of a private e-mail server while she was secretary of state, says a person briefed on the matter.

Russia uses informatio­n operations to advance foreign policy. The audience for sensitive internal documents and damaging informatio­n wouldn’t be U.S. voters, says Brendan Conlon, who formerly led an NSA hacking unit. “Why would Russia go to this trouble? Simple answer: Because it met their foreign policy objectives, to weaken the U.S. in the eyes of our allies and adversarie­s,” says Conlon, now chief executive officer of Vahna, a cybersecur­ity company in Washington. “The end result is a weaker president once elected.”

Russia has been accused of similar hacks in Europe. The German intelligen­ce agency has concluded that Russia was responsibl­e for a 2015 hack that forced the shutdown of the Bundestag’s computer systems. Security software maker Trend Micro said in May that Russian hackers had been trying to steal data from Chancellor Angela Merkel’s Christian Democratic Union party, and that they also tried to hack the Dutch Safety Board—to obtain an advance copy of a report that tied the downing of a Malaysian aircraft over Ukraine in July 2014 to a Russianmad­e Buk surface-to-air missile.

The bottom line Hackers have obtained sensitive documents from the Democratic Party and may have data from thousands of political operatives.

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