Signal, No Noise

December 16, 2009

Plane seized by Thais linked to alleged smugglers

Filed under: Asia,East Asia,Military,North Korea,South East Asia,Thailand — mungurk @ 09:14

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Dec 15, 10:09 AM EST

By GRANT PECK
Associated Press Writer

BANGKOK (AP) — A weapons-laden cargo plane impounded in Bangkok has links to at least two men accused of global arms trafficking, including one fighting extradition to the U.S. from Thailand, an analyst said Tuesday.

The five-man crew of the aircraft that arrived from North Korea – four from Kazakhstan and one from Belarus – have been charged with illegal arms possession and face up to 10 years in prison.

The men were being held at Bangkok’s high-security Klong Prem Central Prison, the current home to suspected Russian arms dealer Viktor Bout, once dubbed the “Merchant of Death” for allegedly supplying weapons to dictators and warlords around the world.

Thai officials impounded the Ilyushin Il-76 transport plane when it landed in Bangkok on Saturday to refuel, and discovered what they said was 35 tons of explosives, rocket-propelled grenades, components for surface-to-air missiles and other armaments – exported in defiance of a U.N. embargo against North Korea.

Hugh Griffiths, a researcher at the Stockholm International Peace Research Institute, told The Associated Press the aircraft was previously registered under a company named Beibars, which has been linked to Serbian arms trafficker Tomislav Damnjanovic.

In the past, it has also been registered with three companies identified by the U.S. Treasury Department’s Office of Foreign Assets Control as firms controlled by Bout. The U.S. is trying to extradite Bout, who was arrested in March 2008 during a U.S.-led sting operation and subsequently indicted on four terrorism charges in New York.

Researchers said the arms were likely destined for African rebel groups or a rogue regime such as Myanmar. The aircraft’s documentation had falsely described its cargo as oil-drilling equipment, and declared it was bound for Sri Lanka. Thai officials are skeptical that that was the true destination.

Col. Supisarn Bhakdinarinath, head of the Thai police inspection team, estimated the value of the weapons at about 500-600 million baht ($15 million-18 million).

Supisarn said more serious charges, possibly carrying the death penalty, would be added because the haul included explosives.

Prison director Sopon Thititam-pruek said the crew members were being held in separate cells, and guards were keeping a close eye on them to prevent them from meeting Bout.

Griffiths said the past owners of the aircraft have been documented by the United Nations as trafficking arms to Liberia, Sierra Leone, the Democratic Republic of Congo, Somalia, Sudan and Chad. He said the plane also was used to ship arms from the Balkans to Burundi in October.

“They are like flocks of migrating birds, these aircraft. They change from one company to another because the previous company has either been closed down for safety reasons or been identified in a U.N. trafficking report,” Griffiths said.

Siemon Wezeman, a Senior Fellow at SIPRI, said the types of arms found in the aircraft – used to add firepower against planes and tanks in the arsenal of government forces – were typical of those used by insurgent movements, and raised suspicion they could be headed for an African rebel group.

Possible buyers included Sudan, which might pass the weapons to rebel groups in Chad, and Eritrea, which might keep them for its own arsenal or pass them on to warring factions in Somalia, said Christian LeMiere, editor of the London-based Jane’s Intelligence Weekly.

The United States, which is particularly concerned about North Korea selling weapons and nuclear technology in the Middle East, reportedly tipped off Thai authorities to the illicit cargo. The U.S. Embassy has declined to comment.

Impoverished North Korea is believed to earn hundreds of millions of dollars every year by selling missiles, missile parts and other weapons to countries such as Iran, Syria and Myanmar.

U.N. sanctions were imposed in June after the reclusive communist regime conducted a nuclear test and test-fired missiles. They are aimed at derailing North Korea’s nuclear weapons program, but also ban North Korea’s selling of any conventional arms.

Associated Press writers Grant Peck and Jane Fugal in Bangkok, Malin Rising in Stockholm, Misha Dzhindzhikhashvili in Tbilisi, Vladimir Isachenkov in Moscow, and Foster Klug in Washington contributed to this report.

Pakistan focuses on recruiter in plot to kill U.S. troops

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Al-Qaida leaders believed plan a CIA sting

By GRIFF WITTE and SHAIQ HUSSAIN
The Washington Post

Updated: 12/13/2009 01:34:25 AM PST


KABUL — Pakistani authorities Saturday zeroed in on the alleged mastermind of a plot to send five Northern Virginia men to Afghanistan to kill U.S. troops, saying they hope the case could help unravel an extensive network of terrorist recruiters who scour the Internet for radicalized young men.Investigators said they were hunting for a shadowy insurgent figure known as Saifullah, who invited the men to Pakistan after first discovering them when one made comments approving of terror attacks on the Internet video site YouTube.

Saifullah guided the men after they were in Pakistan, attempting to help them reach the remote area in Pakistan’s tribal belt that is home to al-Qaida and its terrorist training camps.

But a Pakistani intelligence official briefed on the case said Saturday that Saifullah was unsuccessful in convincing al-Qaida commanders that the men were not part of a CIA plot to infiltrate the terrorist network.

As a result, they were marooned for days in the eastern city of Sargodha, far from the forbidding mountains of the northwest that have become a terrorist haven.

“They were regarded as a sting operation. That’s why they were rejected,” said the official, who spoke on the condition of anonymity because of the sensitivity of the case.

The official said the men were undeterred and were still trying to acquire the right endorsements to gain access to the al-Qaida camps when they were arrested by Pakistani law enforcement.

The case

of the five — who remain in Pakistan and are being questioned by the FBI — underscores the critical role of recruiters in identifying potential terrorists and, perhaps more importantly, determining who can be trusted.Since the Sept. 11, 2001, attacks, U.S. intelligence has made it a top priority to try to place human assets inside al-Qaida. The organization’s recruiters act as gatekeepers, keeping out those who are not serious about their commitment to holy war, and those who could be spies.

Would-be American recruits are treated by al-Qaida with special scrutiny, analysts said. But they are also considered enormously appealing to the group because of their potential to access U.S. targets and because of their propaganda value.

But Evan Kohlmann, senior analyst with the U.S.-based NEFA Foundation, said terror groups have also become much more cautious in recent years about who they allow in because U.S. intelligence agencies have become experts in their recruiting methods.

“If you’re trying to sink someone into these groups, what better way than to follow the recruitment model that so many have already followed?” Kohlmann said.

The model is one that has become far more Web-based.

“Increasingly, recruiters are taking less prominent roles in mosques and community centers because places like that are under scrutiny. So what these guys are doing is turning to the Internet,” Kohlmann said.

Terror group operatives, and even freelance recruiters, troll jihadi social networking sites, attempting to establish relationships with young men who seem ideologically committed, and physically able, to commit violence in the name of radical Islam.

In one case, a recruiter named Younes Tsouli is believed to have used such sites to identify dozens of aspiring insurgents for the war in Iraq — all without leaving his London basement.

But Kohlmann said the case of the five from Northern Virginia was unusual because they were identified on a site with mass appeal.

“The idea that YouTube would be a mechanism for making these connections, that’s something new,” he said, adding that it could be a troubling development for law enforcement because such sites are so vast they are difficult to monitor.

In most cases, it is the recruit who reaches out to radical Web sites and chat rooms in the hopes of finding someone to help make the introductions to a militant group.

“A recruiter does not radicalize a person from scratch,” said Manuel Torres, a terrorism expert in Spain, where the Internet played a key role in influencing some of the perpetrators of the 2004 Madrid train bombings. “They deal with people who are already ready to die.”

Recruiters who are satisfied that they have found a would-be terrorist who is serious, and not a spy, can then make the necessary introductions. “What they really serve as are facilitators, intermediaries to the jihadist world,” Torres said.

In the case of the five men from Northern Virginia, their recruiter was unable to complete the introduction. The men — Ramy Zamzam, 22, Ahmad A. Minni, 20, Umar Chaudhry, 24, Waqar Khan, 22, and Aman Hassan Yemer, 18 — have not yet been charged with a crime. But investigators say they have proudly admitted to flying to Pakistan on Nov. 30 to join the jihad, or holy war, against American forces in Afghanistan.

Law enforcement authorities have said they likely would not have uncovered the men’s plans so quickly had it not been for family members who expressed concern when the men went missing. At least one of the men left behind a video described as containing jihadi overtones.

The case has surprised leaders of the mosque in the Alexandria area of Fairfax County, who said they had never seen the men expressing radical beliefs.

The five were shifted from Sargodha on Saturday to the provincial capital of Lahore, where they continued to face questioning. Pakistani officials said that while the men would ultimately be sent back to the U.S. to face charges, they were hoping to keep them in Pakistan while the investigation continues so they can use their statements to help track Saifullah and other members of his network.

The man known as Saifullah — Pakistani officials are unsure if it is his real name — was already wanted for his role in a spectacular attack earlier this year on the Sri Lankan cricket team as it visited Lahore for a tournament.

A Pakistani police official involved in the investigation said Saifullah is a member of the Pakistani Taliban, and that he first contacted the men in August. They exchanged coded e-mail messages for months thereafter. After their arrival in Pakistan, he advised them to wear the local dress and instructed them to take buses to a city near the edge of the tribal areas where they could then be transported to North Waziristan, home base of al-Qaida. They were arrested before they could make the journey.

The men have told investigators that Saifullah was the only one who welcomed them in Pakistan, and that they were rejected by at least two other extremist groups, Jaish-e-Mohammed and Lashkar-e-Taiba.

Saifullah is believed by Pakistani investigators to have spent time in the United States, because of his familiarity with American slang and geography.

Mehmood Shah, a retired Pakistani general who is based in the northwestern city of Peshawar, said that many among al-Qaida’s top ranks have lived or have been educated in the West, and have insight into how best to appeal to American Muslims.

One of the group’s best known spokesmen, the U.S.-born Adam Gadahn, released an English-language video Saturday that claimed al-Qaida was not responsible for a string of recent bombings in Pakistan that have killed scores of civilians.

“The mercenaries of the ISI, RAW, CIA or Blackwater are the real culprits behind these senseless and un-Islamic bombings,” he said, referring to the intelligence services in Pakistan, India and the U.S. as well as the American military contractor now known as Xe Services.

Pakistani authorities have said they believe a nexus of al-Qaida, the Taliban and local extremist groups are behind the bombings.

Cyber crime poses threat to e-commerce

Filed under: Americas,Cyberspace,North America — mungurk @ 09:08

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By Kevin Voigt, CNN
December 15, 2009 — Updated 0045 GMT (0845 HKT)

(CNN) — The past 12 months have been a banner year for cyber crime. And that could be bad news for the future of e-commerce.

“At current trends, in three or four years people will start to think twice about transacting on the Web, individuals and businesses,” said Michael Fraser, director of the communications law centre at the University of Technology Sydney.

“The way it’s trending now, the Web could be so full of rubbish that people won’t trust it,” Fraser said. “That could destroy the potential of the whole knowledge economy, which so many developed economies are counting on for the competitive advantage.”

According to antivirus maker Symantec, 87 percent of e-mail traffic in the past year was spam, compared to just under 70 percent in 2008. More than 40 trillion spam messages were sent according to Symantec, which monitors about a third of the world’s e-mail traffic. That’s about 5,000 spam messages for every person on the planet.

More of that spam is harboring malicious software, or “malware,” — 2 percent of spam contained malware, a 900 percent increase from the previous year.

Malware comes in a variety of forms that can search computers for bank information and personal details for identity theft, or hijack computers to become foot soldiers in a spamming army of zombie “botnets” — often unbeknownst to the owner. In Australia alone, an estimated 10 percent of computers are infected with malware, Fraser said. “And we’re relatively low because we have less (broadband penetration) than many other countries,” he said.

The past year saw an explosion of individuals on social networking sites such as Facebook having their accounts compromised and spam being sent to friends within their network.

In this way, cyber criminals have made the attacks more personal because they are sending out messages appropriating victims’ names, says Marian Merritt, an Internet safety advisor for Norton, the antivirus brand produced by Symantec. “In the past, people felt annoyed by spam, they didn’t really feel a sense of being attacked,” Merritt said. “But if your Facebook account is hacked, it’s embarrassing.”

The past year has seen the rise of “scareware” — malware that parrots a legitimate antivirus software program and then infects the computer with “the very malware it purports to protect against,” a Symantec report said. For a 12-month period ending June 30, Symantec received 43 million reports of scareware installation attempts.

“That took a lot of us in the industry by surprise the past year,” Merritt said. “You get a pop-up ad saying, ‘you have multiple viruses’ then asks you to download the antivirus software. Once you download those programs, they hold you hostage.”

The speed of news

The past year saw the rising speed and popularity of malware spam and Web sites with touts related to current events and celebrity news. “Who killed Michael Jackson?” “Get swine flu medicine here” and “Full eBook Harry Potter” were some popular online traps to open dangerous e-mail attachments or be directed to Web sites’ malware.

“If you want to know what spam will be hitting tomorrow, look at Google Trends today,” said Merritt, referring to Google’s site that shows hot topics and searches by its users.

One of the most alarming incidents in 2009 for governments and policy makers was the July 4 attacks on U.S. government sites, such as the White House, the New York Stock Exchange and Nasdaq — followed a few days later by similar attacks on Web sites in South Korea. According to a research paper by antivirus maker McAfee, both attacks were made by the same “botnet” of 50,000 computers, which spammed targets with so many e-mails their IT systems were overwhelmed.

North Korea was suspected as the originator of the attack, leading Dmitiri Alperovitch, vice president of threat research at McAfee, to suggest one motivation of the attack “could have been to test the impact of flooding South Korean networks and the transcontinental communications between the U.S. government … (which) would provide them with a significant advantage in case of a surprise attack.”

The attack highlights the problem of security on the Internet — a transnational attack, using commercial services and tens of thousands of personal computers. To fight the attacks would take strong local and international laws on cyber security, a great deal of cooperation among commercial providers and effective systems to report the crimes — none of which is happening today, Fraser said.

“The community doesn’t know where to turn to when these crimes occur, and the police don’t know how to report it or record it, and prosecutors and court systems have a hard time coping with cases that involve gigabytes of evidence,” he said.

Looking ahead to 2010, antivirus maker Trend Micro predicts that there will be more attacks on Mac operating systems. Previously ignored by malware makers because of its relatively l

December 15, 2009

Iranian jailed in US for arms trafficking plot

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Page last updated at 21:54 GMT, Monday, 14 December 2009

An Iranian man has been jailed for five years in the US after admitting plotting to procure and smuggle arms to Iran, prosecutors say.

Amir Ardebili was seized by undercover US agents overseas in 2007 following a five-year investigation.

In May 2008, he pleaded guilty to arms trafficking, but this was only revealed two weeks ago.

Iran complained to United Nations officials in October about how the US had seized Ardebili.

Iranian President Mahmoud Ahmadinejad has likened the case to three US hikers who were detained after crossing the border from Iraq.

‘Acquiring components’

A federal prosecutor in the state of Delaware, Assistant Attorney David Hall, said Ardebili had acquired thousands of items, including military aircraft parts, the Associated Press news agency reported.

Shane Bauer, Sarah Shourd, Joshua Fattal (file images)

Iran has linked the case to that of the detained US hikers

Mr Hall said Ardebili had been arrested in the Republic of Georgia in October 2007.

The defendant was extradited to the US in January 2008.

When the documents on his case were unsealed this month, US attorney David Weiss said: “For years, the defendant was in the business of acquiring components, many with military applications, for the government of Iran.

“The government’s investigation and prosecution has put the defendant out of business and removed this threat to our national security.”

Ardebili, also known as Amir Ahkami and Alex Dave, is reported to have said his intention was to protect Iran from missile attacks.

His court appearance in May 2008 was reportedly conducted under high security.

The windows of the court room were covered and a guard placed outdoors, the Delaware News Journal reported.

Ardebili is one of a number of Iranian citizens Mr Ahmadinejad noted last month that the United States was detaining.

Analysts say Iran may try to use these detentions in negotiations for the release of the three hikers.

On Monday, Iranian Foreign Minister Manouchehr Mottaki said the hikers, Shane Bauer, Sarah Shourd and Josh Fattal, would stand trial, although he did not specify on which charges.

They have previously been accused of illegal entry and spying.

However, US Secretary of State Hillary Clinton said any charges would be unfounded and she called on Tehran to release the three immediately.

Report: NKorea ups limit for currency exchange

Filed under: Asia,East Asia,North Korea — mungurk @ 10:21

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(AP) – 8 hours ago

SEOUL, South Korea — North Korea raised the amount of old currency that citizens can turn in for new bills after merchants rioted against the rules, a news report said Tuesday.

North Korea redenominated its national currency, the won, late last month, limited the maximum amount of old bills that could be converted into new ones and told its people to deposit the rest in government-run banks.

The sudden move has reportedly touched off anger and frustration, especially among middle-class merchants holding large amounts of cash amid concern it would be difficult to get their money back from banks or they could be investigated over the source of their assets.

Merchants hit hard by new currency rules rioted in the eastern coastal city of Hamhung on Dec. 5-6 and many people supported the protest, South Korea’s mass-circulation Chosun Ilbo newspaper said, citing unidentified sources inside the North.

In an attempt to allay the anger, the government raised the amount of old bills convertible into new currency to 500,000 won per individual from previous 100,000 won on Dec. 6, the newspaper said.

The regime also assured citizens that the rest can be converted through bank deposits, that they won’t be questioned if their deposits are no more than 1 million won, and that money in excess of 1 million won could also be exchanged through deposits if they explain how they accumulated the assets, according to the report.

South Korea’s spy agency said it could not confirm the report.

The North Korean won was previously officially traded at 145 to the dollar, but more than 3,000 were needed to buy $1 on the black market, according to Dong Yong-sueng, a senior fellow at Samsung Economic Research Institute in Seoul.

The overhaul of the won — the most drastic in 50 years — appears aimed at curbing runaway inflation and clamping down on street markets that have sprung up. The government is also retaking control of the economy from the hands of merchants, analysts say.

Evidence of Iran’s nuclear arms expertise mounts

Filed under: Iran,Middle East,Military,WMD — mungurk @ 09:40

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Washington Post Staff Writer
Tuesday, December 15, 2009

Long denied access to foreign technology because of sanctions, Iran has nevertheless learned how to make virtually every bolt and switch in a nuclear weapon, according to assessments by U.N. nuclear officials in internal documents, as well as Western and Middle Eastern intelligence analysts and weapons experts.

Iran’s growing technical prowess has been highlighted by a secret memo, leaked to a British newspaper over the weekend, that purportedly shows Iranian scientists conducting tests on a neutron initiator, one of the final technical hurdles in making a nuclear warhead, weapons analysts said Monday.

There was no way to establish the authenticity or original source of the document, which is being assessed by officials at Western intelligence agencies and the U.N. nuclear watchdog. Even so, former intelligence officials and arms-control experts said that if it is a genuine Iranian government document, it is a worrisome indication of an ongoing, clandestine effort to acquire nuclear weapons capability. Iran has steadfastly denied seeking nuclear arms.

The accumulating evidence of Iran’s nuclear momentum emerges as Secretary of State Hillary Rodham Clinton conceded Monday that the White House has little to show for nearly a year of diplomatic engagement with Iran over its nuclear ambitions. “I don’t think anyone can doubt that our outreach has produced very little in terms of any kind of a positive response from the Iranians,” Clinton told reporters.

The internal documents and expert analysis point to a growing Iranian mastery of disciplines including uranium metallurgy, heavy-water production and the high-precision explosives used to trigger a nuclear detonation. Although U.S. spy agencies have thought that Iran’s leaders halted research on nuclear warheads in 2003, European and Middle Eastern analysts point to evidence that Iran has continued to hone its skills, as recently as 2007.

“They’re slowly weaning themselves off a reliance on importing critical technologies, in favor of being able to manufacture critical components themselves,” said Rolf Mowatt-Larssen, a retired CIA officer and former Energy Department intelligence director. “Achieving an indigenous production capacity is right up there with mastering uranium enrichment.”

Iranian scientists must still rely on outsiders for certain components and materials, such as high-strength metals used in making advanced centrifuges and longer-range missiles. But the remaining technical gaps are shrinking, according to an internal memo drafted by top Iran analysts at the International Atomic Energy Agency, the U.N. nuclear watchdog. Excerpts from the never-published draft were leaked to a nonprofit group in October.

“Iran has sufficient information to be able to design and produce a workable implosion nuclear device,” the memo states.

Iran insists that it opposes nuclear weapons, and points out that the technologies that have raised suspicions in the West have peaceful uses. But Iranian officials do not conceal their pride in their ability to develop advanced technology in spite of U.N. sanctions. Ali Soltanieh, Iran’s representative to the IAEA in Vienna, said in an interview with The Washington Post this fall that as Iranian engineers conquer the nuclear sciences, they will “jump hundreds of meters up in a short time,” pulling even with their counterparts from the West.

“We should thank the Americans for sanctions, because they have united our country,” he said.

The newly leaked Iranian memo, first published by the Times of London, purports to show a four-year plan by Iran to develop and test a neutron initiator of a type that weapons experts say has no known civilian use. The document is neither signed nor dated, but the Times, citing unnamed foreign intelligence officials, said it was written in 2007, four years after U.S. intelligence officials think Iran halted research on nuclear warheads.

The creased, two-page document in Farsi script asserts that Iran’s capabilities in the field of neutron initiators already “are reasonably good.” It calls on scientific teams to build on previous secret research while also maintaining a high degree of security.

While the document makes no mention of nuclear warheads, it describes work in highly specialized fields closely associated with atomic bombs, said David Albright, a former U.N. weapons inspector who reviewed the memo and other documents.

“They are eliminating bottlenecks in the process of creating a reliable nuclear warhead,” said Albright, president of the D.C.-based Institute for Science and International Security. “I have no evidence of an Iranian decision to build them. On the other hand, doing the kind of work described in this document is a far cry from the common belief that Iran stopped work on nuclear weapons in 2003 and has not restarted.”

A U.S. intelligence official, speaking on the condition of anonymity, acknowledged there have been “serious concerns for some time about where Iran may be headed with its nuclear activities.”

The leaked memo follows the disclosure in September that Iran had secretly built a small uranium plant in a mountain north of the ancient holy city of Qom.

In late October, IAEA inspectors who visited Iran for a first look at the secret plant also made a surprise discovery of 600 barrels of heavy water, a toxic liquid used in making plutonium, during a routine visit to one of Iran’s lesser-known nuclear facilities near the city of Isfahan.

A recent IAEA report called on Iran to “provide information on the origin” of the heavy water.

“It was a complete surprise,” said a European diplomat who agreed to talk about the internal debate on the condition of anonymity. “We assumed that the Iranians had purchased it from elsewhere, but no one really knew. No one believes they could have made it at the existing plant” — a small facility at Khonab that has been mostly idle since it opened three years ago.

In a closed-door session of the IAEA governing board on Thanksgiving, the head of one of the Northern European delegations asked the chief Iranian nuclear official, Ali Akbar Salehi, to explain how Iran had acquired such a quantity of heavy water.

“We made it,” Salehi reportedly shot back, according to two diplomats in the room.

Whether Iran’s ruling clerics have decided to make a bomb is unclear. In 2003, after Iran’s first uranium-enrichment plant was exposed by the National Council for Resistance in Iran, a dissident group, the country’s top leaders ordered their scientists to halt research on nuclear warheads.

That command, intercepted by Western spies, appears to have applied only to teams working on the technical challenges of building a warhead and fitting it to one of Iran’s longer-range missiles. The harder task of creating the uranium fuel for bomb continued and slowly accelerated; Iran now manufactures four types of centrifuges, machines that spin at supersonic speeds to create the uranium fuel used in both power plants and nuclear weapons.

There are signs suggesting to some intelligence analysts that bomb-building research resumed after 2005, the year Mahmoud Ahmadinejad assumed the Iranian presidency. In a case cited by German government officials, Iran in 2007 bought several highly specialized devices linked to nuclear weapons testing. One was a $40,000, Russian-made camera used to record high-speed events in a laboratory. In nuclear weapons research, such cameras help calibrate the accuracy of precision-timed explosions used to trigger a nuclear chain reaction.

High-speed cameras have other industrial uses. But according to an analysis by the Institute for Science and International Security, the model of camera bought by Iran was developed by a commercial offshoot of the All-Russia Research Institute of Experimental Physics, the premier nuclear weapons laboratory of the former Soviet Union. The spinoff company, Bifo, has co-authored research papers on explosive shock waves used in nuclear detonations.

Notably, Russian scientists with expertise in detonators have visited Iran at least as recently as 2003 to provide technical training and instructions on building triggering devices for nuclear bombs, according to Western and Middle Eastern intelligence analysts briefed on the visits.

Mexico Tourism Revenues Drop 10.5%

Filed under: Americas,Central America,Mexico — mungurk @ 09:29

source

December 15,2009

MEXICO CITY – Mexico’s revenues from tourism will drop this year by some $1.4 billion, or 10.5 percent, from the 2008 total of $13.29 billion, the country’s tourism secretary said on Monday.

Rodolfo Elizondo told a press conference that 2009 has been “without a doubt the worst year” in the history of Mexican tourism, due to the global recession and fears sparked by this year’s swine flu epidemic.

He said, however, that the latest data available show that the country has “widely overcome the crisis.”

“There has been a total recovery from the effects of the AH1N1 flu virus on hotel occupation,” Elizondo said in presenting figures for the first 10 months of the year.

The country obtained between January and October $9.19 billion from tourism and welcomed 17.28 million foreign visitors, compared with $11.06 billion and 18.29 million visitors during the same period in 2008.

Tourism is the nation’s third largest source of foreign currency after oil exports and remittances from emigrants in the United States.

The secretary said that Mexico’s principal tourist destinations “were back to 2008 levels and to the percentage of occupation registered before the health alert” caused by the swine flu epidemic detected at the end of April.

He said that the recovery observed “is largely explained by the increase in domestic tourism,” while in vacation centers that depend largely on international visitors such as the Maya Riviera, Cancun and Nuevo Vallarta, “recovery has not been so quick.”

In the first 11 months of 2009, the total number of rooms available at Mexico’s leading tourist destinations increased by 8,000, which required an investment of some $800 million and shows “the solidity of investors’ expectations of recovery in the sector,” he said.

Hotel occupation in the 69 leading tourist cities decreased 4.5 percent between August and the beginning of December, a drop similar to the one seen between January and April before the alert for the flu outbreak.

In the first six months of the year, the arrival of tourists in Mexico fell 6.6 percent, which for the minister represented “a moderate decrease” compared with countries like the United States, Canada and Spain, where arrivals dropped 8.6 percent, 9.2 percent and 9.3 percent, respectively.

In October, not only was the decrease in visitor arrivals from other countries to Mexico halted, but there was an increase of 7.2 percent over the same month in 2008.

For 2010, on the other hand, Elizondo said that Mexico will take in some $13 billion from tourism and will receive some 23 million foreign visitors, figures similar to 2008. EFE

Paper-based data breaches on the rise

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By Brian Krebs  |  December 10, 2009; 6:15 PM ET

More than one quarter of data breaches so far this year involved consumer records that were jeopardized when organizations lost control over sensitive paper documents. Experts say those incidents came to light in large part due to a proliferation of state data breach notification laws, yet current federal proposals to preempt those state measures would allow paper-based breaches to go unreported.

According to the Identity Theft Resource Center, a San Diego based nonprofit, at least 27 percent of the data breaches disclosed publicly in 2009 stemmed from collections of sensitive consumer information printed on paper that were lost, stolen, inadvertently distributed or improperly disposed of.

dumpsterjpg.JPG

Some 45 states and the District of Columbia have enacted laws requiring companies that lose control over sensitive consumer data such as Social Security or bank account numbers to alert affected consumers, and in some cases state authorities. Concerned about the mounting costs of complying with so many different state breach regulations, businesses often find it easier and cheaper to adhere to the strictest state laws.

Congress, though, is considering several federal data breach notification measures that would preempt existing state regulations.The three leading federal proposals, including a bill passed this week by the House of Representatives — and a pair of measures passed by the Senate Judiciary Committee last month, would require notification only when data stored electronically is lost or stolen.

“Computers were supposed to take us to a paperless society, yet computers probably create more paper than before we had them, because now we want a hard copy as well as what’s on the computer,” ITRC co-founder Linda Foley said. “It’s a double danger of course, because paper – especially when it’s just tossed in a dumpster somewhere – is not like data on a hard drive. It’s ready to use, it often contains the consumer’s handwriting and signatures, which can be very useful when you’re talking about forging credit card and mortgage applications.”

Still, it is frequently difficult to determine precisely how many consumer records are jeopardized in paper-based breaches. Indeed, often the closest measure of the size of paper-based data breach is the number of pounds of documents involved, Foley said.

“There was a case earlier this month in Missouri where 2,000 pounds of credit reports, blank checks and copies of Social Security statements were found in a dumpster,” Foley said. “Unfortunately, you pay by the pound for shredding these documents, and that’s the best measure we have sometimes.”

That incident, reportedly involving the former Battlefield, Mo. -based Nationwide Credit Counseling, exposes a frequent source of paper breaches: Companies that go belly-up. And with the ongoing recession claiming more and more companies each day, paper-based breaches are only going to grow as a percentage of overall data spills, Foley predicts.

“What we’re seeing is companies are going out of business and then they take these papers and just toss them, or leave them for the building’s cleaning crew to deal with,” Foley said. “This is a trend that’s only going to get worse.”

According to the ITRC, 17 percent of data breaches reported last year were solely paper-based.

While the federal bills are largely silent on paper breaches, most existing state laws also focus on electronic records. At least two states — Massachusetts and North Carolina – require notification whether the data breached is in electronic or paper form.

David Sohn, senior policy counsel at the Center for Democracy & Technology, said the fact that more than one quarter of data breaches reported this year were paper-based suggests that businesses are in fact reporting paper breaches.

“Our position has been personal data – once digitized — does raise the stakes in terms of ease-of-use,” by identity thieves, Sohn said. “But certainly it is not the case that [breached] paper records pose no threat. The question is: To what extent do companies suffering a breach today think they have an obligation to report paper breaches?”

Stuart Ingis, a partner with the law firm Venable LLP in Washington, said many clients he deals with strictly speaking do not have a legal obligation to report paper-based breaches, but that most of his clients err on the side of caution.

“Most companies really are looking to whether there is likely to be harm to the consumer,” from a breach, Ingis said. “We really don’t have too many scenarios where legitimate companies are trying to hide the fact that they’ve had a breach.”

The ITRC has chronicled 125 paper breaches so far this year, out of a total of 463. Businesses were responsible for 44 or 9.5 percent of the breaches; government agencies and the military caused 27 breaches, or 5.8 percent; lost, stolen or improperly disposed of medical records accounted for 5 percent; financial institutions caused 17 breaches, or 3.7 percent; and educational institutions were responsible for 14 paper breaches, or 3 percent of this year’s total.

December 14, 2009

A Threat Analysis of RFID Passports: Do RFID passports make us vulnerable to identity theft?

Filed under: Americas,Cyberspace,North America,USA — mungurk @ 10:22

source

Alan Ramos, Weina Scott, William Scott, Doug Lloyd, Katherine O’Leary, Jim Waldo

Communications of the ACM
Vol. 52 No. 12, Pages 38-42
10.1145/1610252.1610268

It’s a beautiful day when your plane touches down at the airport. After a long vacation, you feel rejuvenated, refreshed, and relaxed. When you get home, everything is how you left it—the tables, the chairs, even the now-moldy sandwich you forgot on the counter. Everything, that is, but a pile of envelopes on the floor that jammed the door as you tried to swing it open.

You notice a blinking light on your answering machine and realize you’ve missed dozens of messages. As you click on the machine and pick up the envelopes, you find that most of the messages and letters are from debt collectors. Most of the envelopes are stamped “urgent,” and as you sift through the pile you can hear the messages from angry creditors demanding that you call them immediately. Reading the bank statements, you suddenly realize that someone has been charging large amounts of money to an account in your name from a credit card company you’ve never heard of. You’ve lost thousands of dollars, and suddenly you aren’t feeling quite so relaxed anymore.

How could someone have been stealing money from you like this while you were away on vacation? The thievery actually began months before you even left home. Several months ago, as you were casually walking through the airport en route to a business meeting in Europe, someone was lingering close behind. As you approached a security agent to have your passport checked, this individual used a small antenna connected to a computer in his backpack to eavesdrop on the radio communication between the security agent’s reader, which has the capacity to decrypt the highly sensitive and secured data on the passport, and the RFID-enabled passport itself.

If the attacker had tried to skim the information off your passport by imitating a legitimate reader, the chip would never have provided the personal data within, as the correct access key would not have been given. Since the attacker was merely intercepting the communication with an antenna, however, he was able to collect all of the data, albeit in an encoded form. Private information, including not only basic information about your identity but even a digitized photograph, had been stolen from you at a moment when you thought your passport was safely in the hands of a government official. You moved on without any clue as to how deeply your privacy had been violated in an attack that you had no idea was occurring.

At that point, all the perpetrator needed to do was use the data to create a new passport, use that passport to get a U.S. Social Security number (http://www.ssa.gov/pubs/10002.html External Link), and then create credit card accounts in your name, with your identity, and run amok with your finances.

An RFID-passport attack of this nature is more plausible than other methods, such as skimming the RFID information. Although simple to do, skimming will not yield the information needed to enable identity theft because of preventive measures integrated into the system. The first of these measures is encryption. According to the U.S. Department of State: “When a reader attempts to scan the passport, it engages in a challenge-response protocol that proves knowledge of the pair of keys and derives a session key. If authentication is successful, the passport releases its data contents; otherwise, the reader is deemed unauthorized and the passport refuses read access.”6

Additionally, newer passport covers are being lined with materials that block RFID signals from being transmitted when the passport is closed, exposing the document to attack only when it is opened and displayed for a security agent. Relatively inexpensive signal-blocking sleeves (http://www.rfid-shield.com/products.php External Link) are also available for RFID passports.

What Information is Compromised?

Six pieces of information can be stolen from the RFID chip on a U.S. passport: your name, nationality, gender, date of birth, place of birth, and a digitized photograph.1 Numerous problems of identity theft could arise from someone taking that information, but this article focuses on the financial risk.

Banks in the U.S. require that applicants for credit cards submit their Social Security numbers to be used for background credit checks. Although the passport RFID tag does not carry your Social Security number, a perpetrator can use the information it does contain to obtain your number.

The Social Security Administration’s Web site (http://www.ssa.gov/pubs/10002.html External Link) requires one of three proofs of identity for a U.S. citizen to be issued a new Social Security card: a driver’s license, state-issued non-driver identity card, or passport. With the data stolen from your passport’s RFID chip, someone could create a copy of the passport, then use this counterfeit one to access a real copy of your Social Security card. With this card, the perpetrator is free to apply for a real copy of your credit card, not to mention opening new accounts in your name. This puts you at a serious financial risk, all because someone was able to eavesdrop on your passport’s RFID communication.

Technology Requirements

To eavesdrop on your passport information, a perpetrator needs hardware to capture the signal as it is being scanned by a legitimate RFID reader, such as those used by government officials at airports. He or she would then need the time and technical capacity to decrypt the signal into a usable form. Finally, to reap any real benefits from the stolen information, the attacker must have all the materials necessary to reproduce a passport. We can view this as a series of hurdles that the perpetrator must overcome, starting with data capture, moving onto data recovery, and finally data reproduction.

Let us first focus on capturing the information from your passport, since it is at that point in the event chain that the vulnerabilities of the RFID technology are exploited. For successful data retrieval the perpetrator’s antenna must catch two different interactions: the forward channel, which is the signal being sent from the RFID reader to the RFID token; and the backward channel, which is the data being sent back from the RFID token to the RFID reader. Lab demonstrations3 have shown that a successful eavesdrop (a capture of both channels) on an RFID tag can occur at a distance of one meter with the use of an H-field antenna, a radio frequency receiver, an oscilloscope to monitor the signals, and a computer to store, analyze, and manipulate the data.

In the lab this was done as a proof of concept, but in the real world a perpetrator could use smaller, more discrete hardware. In our airport scenario, the perpetrator would need only an antenna and an amplifier to boost the signal capture, a radio-frequency mixer and filter, and a computer to store the data. The amplifier itself would not even need to be that powerful, since it would need to boost the signal over only a short distance of three to five meters. The antenna, mixer, and filter can be homemade with cheap materials or purchased as a set online. Some Web sites (for example, http://www.openpcd.org/openpicc.0.html External Link) contain schematics, lists of materials, and steps on how to build your own RFID reader the size of a matchbox. These RFID “sniffers” can then be plugged into a laptop via a USB port.

Once the perpetrator has successfully eavesdropped on the communication between the RFID token and the RFID reader, the next step is data recovery. This requires two separate steps. The first is recovering the actual signal between the RFID chip in the passport and the RFID reader. This is a signal-processing problem, essentially separating the actual signal from the noise of the background. Proof-of-concept experiments3 have shown that data recovery is a brute-force problem that can be solved with current hardware. A perpetrator would need only to record the data passed between the RFID and receiver on location, and then could perform the time-consuming signal-processing operations at home. A large part of data recovery is extracting the data from the electrical noise of the environment, which is simplified by taking a noise profile of the environment. The same Web sites that provide schematics for readers also provide code for decoding the data, although the effectiveness of their programs on new passports has yet to be tested.

Once the signal has been recovered, it must be interpreted as data. The difficulty of this step depends entirely on whether and how well the data is encrypted. The encryption key is generated from information on the passport—specifically, the name, date of birth, and passport number. There are reports that this key can be easily cracked (for example, http://www.mobilemag.com/2006/02/03/global-rfid-passport-encryption-standard-cracked-in-2-hours/ External Link) because the algorithm used to produce the key is predictable. An analysis published by the International Association of Cryptologic Research indicates that the entropy of the resulting key is on the order of 52 bits, which, while something of a challenge, is not impossible to crack.4 We assume here that decryption is practical; if it is not, then the possibility of these attacks is minimized.

After recovering the data, the perpetrator would have everything necessary to make a new passport with the captured information. The steps required for this are beyond the scope of this article, but since counterfeiting of passports has been demonstrated and documented, it is enough to say that this is feasible.

Costs to the Perpetrator

What we have shown so far is that with the right equipment and skill, a perpetrator can intercept the signal between a passport and RFID reader, then forge the passport to use for identity theft. The more important question, however, is whether the cost of doing this can be justified by the return.

This question is predicated on the assumption that the encryption of the information held in the passport’s RFID tag can be broken. While there is some evidence this has been true in the past, stronger encryption could increase the cost of the attack considerably, to the point of making it either economically unattractive or technically impossible.

In our airport scenario, a perpetrator would have to cover several costs before reaching the ultimate goal of financial gain. To begin with, there are the hardware costs. The combined cost of the antenna, amplifier, radio mixer, filter, USB connection, and laptop would be on the order of $1,000. These are all fixed costs, and the perpetrator would presumably amortize these by using the hardware to execute numerous attacks over a period of time.

There is also cost associated with access to the passport reader. It is reasonable to assume that the perpetrator would have to purchase an airline ticket to enter the area where passports are scanned.

The cost of being caught must be factored in. Compared with other technologically intensive (for example, online) fraudulent attacks, theft of passport RFID data might involve greater risk because of the physical proximity required to eavesdrop on the RFID communication. The risk-adjusted cost of being caught is quite significant when you consider the prevalence of security officers within airports and the severity of the crime.

Presuming that the attacker manages to escape with the raw data from an eavesdropping operation, it still has to be interpreted at home. The software costs are negligible (open source code for this specific function is available on the Internet) as are the costs of the processing time. In one example, it took less than an hour to recover the passport signal, and this process can be automated.3 Although we have not verified this (since verification would require snooping a passport in a noisy environment such as an airport), the approach presented seemed plausible.

Jeroen van Beek of the University of Amsterdam managed to forge a passport RFID chip for $120.5 This cost is not always necessary because a U.S. passport remains valid even if it is not fitted with an RFID chip or if the chip has failed. (Since all passports issued after 2007 have an embedded RFID chip and are valid for a maximum of 10 years, the ability to use a passport without such a chip will end after 2017.) Rather, the most significant cost is in obtaining or producing a realistic-looking passport in which to print the information. The cost of a blank passport book is difficult to determine, but there are some indications that it is not an insubstantial part of the cost of this form of identity theft. In 2008, for example, 3,000 blank U.K. passports were stolen, and officials valued each one at approximately $3,000.

Estimating the revenues that could be generated also requires some inference. In the U.S., the mean fraud amount per victim for identity theft-related crimes in 2008 was $4,849.2 The potential revenue from the passport identity theft example, however, could conceivably be higher because of the relative ease with which a passport can be used to open new accounts and prove identity, in comparison with the most common current forms of fraud using stolen credit cards, checks, or mail. Nevertheless, comparing this figure to the $3,000 cost of a blank passport (which is just one of the many costs of creating a fake passport) reveals that the operation may not be as profitable as one might have thought.

Countermeasures

A number of countermeasures have been suggested to protect against RFID privacy risks (not specific to the passport example), including permanent tag deactivation (“killing”), temporary tag deactivation (such as using Faraday cages or sleep/wake modes), and access-control mechanisms (hash locks, pseudonyms, blocker tags). You could “kill” the RFID tag (hitting the chip with a hammer does the trick), since, according to the State Department’s Web site, if the chip fails, the passport remains valid; however, most “killing” methods leave evidence of intentional damage. The other solutions would not prevent the interception of communications between tag and authorized reader, particularly at an airport.

More effective countermeasures require changes to current government policy. The government can take steps to improve the security and privacy of passports. The basic access-control system of a U.S passport encrypts communication between it and the RFID reader with a key generated from information written on the passport; the key containing the holder’s information is susceptible to brute-force attacks, however, since it has low entropy.4 One countermeasure would be to add a 128-bit secret, printed on the passport and unique to each passport, to the key derivation algorithm.

The interception of communications between RFID tag and reader is possible because no material capable of blocking RF signals surrounds the passport-control area. Thus, another countermeasure would be to install an enclosure to block RFID transmission outside of the immediate area. Increased security around the passport-control area could also minimize the possibility of intrusion on the communication between tag and reader.

The Final Analysis

Having looked at the potential attack, the costs of that attack, and the returns, we can now ask how concerned we should be about such an exploit. Should you really be worried as you walk through the airport that someone behind you might be stripping you of your passport information in a grand scheme to rob you?

The technical hurdles are surmountable, at least in proof-of-concept demonstrations. It is possible that such an attack could occur, but this possibility must be balanced against the complexity of the attack, the difficulty of obtaining the required high-priced blank passport, and the limited return the attack is likely to produce.

It seems much more likely that most perpetrators would resort to old-fashioned means of stealing your passport information, by stealing your physical passport itself. We recommend that it is more important to be careful about keeping your physical passport safely in hand than to be wary of perpetrators lurking behind you in line at the airport attempting to exploit the RFID tag in your passport.

Hackers declare war on international forensics tool: Microsoft’s COFEE decaffeinated

Filed under: Cyberspace — mungurk @ 10:19

source

By Dan Goodin in San FranciscoGet more from this author

Posted in Crime, 14th December 2009 06:40 GMT

Hackers have released software they say sabotages a suite of forensics utilities Microsoft provides for free to hundreds of law enforcement agencies across the globe.

Decaf is a light-weight application that monitors Windows systems for the presence of COFEE, a bundle of some 150 point-and-click tools used by police to collect digital evidence at crime scenes. When a USB stick containing the Microsoft software is attached to a protected PC, Decaf automatically executes a variety of countermeasures.

“We want to promote a healthy unrestricted free flow of internet traffic and show why law enforcement should not solely rely on Microsoft to automate their intelligent evidence finding,” one of the two hackers behind Decaf told The Register in explaining the objective of the project.

Microsoft has been pouring free COFEE to law enforcement officers since at least mid 2007. Short for Computer Online Forensic Evidence Extractor, it packages forensics tools onto an easy-to-use USB stick that allows investigators to collect browsing history, temporary files and other sensitive data from most Windows-based machines. COFEE is distributed through Interpol.

Last month, when COFEE leaked to the net, Microsoft downplayed concerns the breach would allow hackers to create countermeasures. Redmond representatives weren’t immediately available for comment late Sunday night.

Decaf boasts a huge variety of user-driven countermeasures against COFEE. In addition to nuking temporary files within seconds of detecting files or processes associated with the investigative tool, Decaf can also clear all COFEE logs, disable USB drives, and contaminate or spoof a variety of MAC addresses. Future versions promise to add features that allow users to remotely lock down protected systems.

The software began seeding on private BitTorrent trackers on Sunday afternoon, and shortly thereafter, it was posted here. The Register wasn’t able to immediately analyze the 181 KB executable to confirm it performed as advertised.

The release of Decaf follows the leak last month of COFEE. By the time Microsoft lawyers demanded the removal of COFEE from sites such as Cryptome, the genie was already out of the bottle. To this day, COFEE remains available on Wikileaks.

While the hackers are making available the Decaf executable, they are not releasing the source code for fear, they say, that the signatures used will be reverse engineered. The end user license agreement that accompanies the software states: “You will not disassemble, decompile, or reverse engineer it, in whole or in part, except to the extent expressly permitted by law. You will not use DECAF for illegal purposes. You will comply with all export laws. DECAF is licensed, not sold.” ®

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