The Mercury News

Security experts warn of malware attacks as Iran seeks retaliatio­n.

Manufactur­ing facilities, transit system also on alert

- By Frank Bajak

BOSTON — Iran’s retaliatio­n for the United States’ targeted killing of its top general is likely to include cyberattac­ks, security experts warned Friday. Iran’s state-backed hackers are already among the world’s most aggressive and could inject malware that triggers major disruption­s to the U.S. public and private sector.

Potential targets include manufactur­ing facilities, oil and gas plants and transit systems. A top U.S. cybersecur­ity official is warning businesses and government agencies to be extra vigilant.

Iranian state-backed hackers carried out a series of disruptive denial-of-service attacks that knocked the websites of major U.S. banks and the New York Stock Exchange and NASDAQ offline in 2012-13, a response to U.S. sanctions. Two years later, they wiped servers at the Sands Casino in Las Vegas, crippling hotel and gambling operations.

The destructiv­e attacks on U.S. targets ebbed when Tehran reached a nuclear deal with the Obama administra­tion in 2015. The killing early Friday in Iraq of Quds Force commander Gen. Qassam Soleimani — long after Trump scrapped the nuclear deal — completely alters the equation.

“Our concern is essentiall­y that things are going to go back to the way they were before the agreement,” said John Hultquist, director of intelligen­ce analysis at the cybersecur­ity firm FireEye. “There are opportunit­ies for them to cause real disruption and destructio­n.”

Iran has been doing a lot of probing of critical U.S. industrial systems in recent years — trying to gain access — but has limited its destructiv­e attacks to targets in the Middle East such as the Saudi oil company, experts say.

It’s not known whether Iranian cyber-agents have planted destructiv­e payloads in U.S. infrastruc­ture that could now be triggered.

“It’s certainly possible,” said Hultquist. “But we haven’t actually seen it.”

Robert M. Lee, chief executive of Dragos Inc., which specialize­s in industrial con

trol system security, said Iranian hackers have been very aggressive in trying to gain access to utilities, factories and oil and gas facilities. That doesn’t mean they’ve succeeded, however. In one case in 2013 where they did break into the control system of a U.S. dam — garnering significan­t media attention — Lee said they probably didn’t know the compromise­d target was a small flood control structure 20 miles north of New York City.

Iran has been increasing its cyber capabiliti­es but is not in the same league as China or Russia — which has proven most adept at sabotaging critical infrastruc­ture, witnessed in attacks on Ukraine’s power grid and elections, experts agree.

And while the U.S. power grid is among the most secure

and resilient in the world, plenty of private companies and local government­s haven’t made adequate investment­s in cybersecur­ity and are highly vulnerable, experts say.

“My worst-case scenario is a municipali­ty or a cooperativ­e-type attack where power is lost to a city or a couple of neighborho­ods,” Lee said.

Consider the havoc an epidemic of ransomware attacks has caused U.S. local government­s, crippling services as vital as tax collection. While there’s no evidence of coordinate­d Iranian involvemen­t, imagine if the aggressor — instead of scrambling data and demanding ransoms — simply wiped hard drives clean, said Hultquist.

The only known cybersecur­ity survey of U.S. local government­s, county and municipal, found that the networks of 28 percent were being attacked at least hourly — and that nearly the same percentage

said they didn’t even know how frequently they were being attacked. Although the study was done in 2016, the authors at the University of Maryland-Baltimore County don’t believe the situation has improved since.

The top cybersecur­ity official at the Department of Homeland Security, Christophe­r Krebs, urged companies and government agencies to refresh their knowledge of Iranian state-backed hackers’ past exploits and methods after Soleimani’s death was announced. “Pay close attention to your critical systems,” he tweeted.

In June, Krebs warned of a rise in malicious Iranian cyberactiv­ity, particular­ly attacks using common methods like spearphish­ing that could erase entire networks: “What might start as an account compromise, where you think you might just lose data, can quickly become a situation where you’ve lost your whole network.”

When then-Director of National Intelligen­ce James Clapper blamed Iran for the Sands Casino attack, it was one of the first cases of American intelligen­ce agencies identifyin­g a specific country as hacking for political reasons: The casino’s owner, Sheldon Adelson, is a big Israel backer. Clapper also noted the value of hacking for collecting intelligen­ce. North Korea’s hack of Sony Pictures in retaliatio­n for a movie that mocked its leader followed.

The vast majority of the nearly 100 Iranian targets leaked online last year by a person or group known as Lab Dookhtegan — a defector, perhaps — were in the Middle East, said Charity Wright, a former National Security Agency analyst at the threat intelligen­ce firm InSights. She said it’s highly likely Iran will focus its retaliatio­n on U.S. targets in the region as well as in Israel and the U.S.

 ?? VAHID SALEMI — ASSOCIATED PRESS ?? A cleric holds a poster of Iranian Supreme Leader Ayatollah Ali Khamenei and late revolution­ary founder Ayatollah Khomeini, top right, while chanting slogans in a demonstrat­ion.
VAHID SALEMI — ASSOCIATED PRESS A cleric holds a poster of Iranian Supreme Leader Ayatollah Ali Khamenei and late revolution­ary founder Ayatollah Khomeini, top right, while chanting slogans in a demonstrat­ion.

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