National Post

VAUNTED U.S. HACKER ALERT DIDN’T WORK

- By Ted Bridis, Ken Dilanian And Eric Tucker

The U.S. government is worried that hackers who raided more than four million federal employment files will use their loot to pry into more-secure computers and plunder secrets about the U.S. military, economic strategy or foreign relations.

Federal officials said Friday the cyber-attack appeared to have originated in China, but did not point fingers directly at the Chinese government. The Chinese said any such accusation would be “irresponsi­ble and unscientif­ic.”

Federal employees were told in a video to change all their passwords, put fraud alerts on their credit reports and watch for attempts by foreign intelligen­ce services to exploit them. That message came from Dan Payne, a senior counter-intelligen­ce official for the director of national intelligen­ce.

“Some of you may think that you are not of interest because you don’t have access to classi- fied informatio­n,” he said. “You are mistaken.”

White House spokesman Josh Earnest said he could not divulge much while the case was under investigat­ion. Still, he noted investigat­ors “are aware of the threat that is emanating from China.”

One U.S. official said the breach was being investigat­ed as a national security matter, suggesting authoritie­s believe a nation was behind it rather than a more loosely organized gang of cyber-criminals.

The break-in is an embarrassi­ng showing for the U.S. government’s vaunted computer-defence system for civilian agencies — dubbed “Einstein” — which is costing $376 million this year alone. It’s supposed to detect unusual Internet traffic that might reflect hacking attempts or stolen data being transmitte­d outside the government.

This latest breach occurred in December but wasn’t discovered until April, officials say. It was made public Thursday.

“The scale of it is just staggering,” said Rep. Adam Schiff of California, top Democrat on the House intelligen­ce committee. There’s no telling how many more attacks could be spawned by the informatio­n stolen in this case, he said.

Although most Americans think of identity thieves stealing from credit card or bank accounts, the informatio­n about civilian federal workers has other value for foreign spies.

“They’re able to identify people who are in positions with access to significan­t national security informatio­n and can use personal data to target those individual­s,” said Payne.

Details from personnel files could be used to craft personaliz­ed phoney messages to trick workers. Federal employees who think they are opening an email from co-workers or family members might infect their computers with a program that would steal more informatio­n or install spy software. Spies also could use details about an employee’s interests or background to befriend them and try to manipulate them into revealing secrets.

Kevin Mitnick, a former hacker who runs Mitnick Security Consulting of Las Vegas, called the confidenti­al details “a gold mine.”

“What’s the weakest link in security?” he said. “The human. Now you know all about your target.”

The Homeland Security Department said it used Einstein to confirm the breach. But that’s the equivalent of a smoke alarm sounding after the house burned down.

“It didn’t fare so well,” said James Lewis, a cyber-security expert at the Center for Strategic and Internatio­nal Studies, a Washington think-tank. “It’s only a victory if you defeat the opponent, and we didn’t.”

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