Exclusive: Hackers spied on U.S. Treasury emails for a foreign government - sources

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Exclusive: Hackers spied on U.S. Treasury emails for a foreign government - sources

Exclusive: Hackers spied on U.S. Treasury emails for a foreign government - sources
Christopher Bing
WASHINGTON (Reuters) - Hackers backed by a foreign government have been monitoring internal email traffic at the U.S. Treasury Department and an agency that decides internet and telecommunications policy, according to people familiar with the matter.



FILE PHOTO: A hooded man holds a laptop computer as cyber code is projected on him in this illustration picture taken on May 13, 2017. REUTERS/Kacper Pempel/Illustration


There is concern within the U.S. intelligence community that the hackers who targeted Treasury and the Commerce Department’s National Telecommunications and Information Administration used a similar tool to break into other government agencies, according to three people briefed on the matter. The people did not say which other agencies.

“The United States government is aware of these reports and we are taking all necessary steps to identify and remedy any possible issues related to this situation,” said National Security Council spokesman John Ullyot.

The hack is so serious it led to a National Security Council meeting at the White House on Saturday, said one of the people familiar with the matter.

The breach presents a major challenge to the incoming administration of President-elect Joe Biden as officials investigate what information was stolen and try to ascertain what it will be used for. It is not uncommon for large scale cyber investigations to take months or years to complete.

“This is a much bigger story than one single agency,” said one of the people familiar with the matter. “This is a huge cyber espionage campaign targeting the U.S. government and its interests.”

Hackers broke into the NTIA’s office software, Microsoft’s Office 365. Staff emails at the agency were monitored by the hackers for months, sources said.

A Microsoft spokesperson did not immediately respond to a request for comment.

The hackers are “highly sophisticated” and have been able to trick the Microsoft platform’s authentication controls, according to a person familiar with the incident, who spoke on condition of anonymity because they were not allowed to speak to the press.

“This is a nation state,” said a different person briefed on the matter. “We just don’t know which one yet.”

The full scope of the breach is unclear. The investigation is still its early stages and involves a range of federal agencies, including the FBI, according to the three people familiar with the matter.

A spokesperson for the Cybersecurity and Infrastructure Security Agency said they have been “working closely with our agency partners regarding recently discovered activity on government networks. CISA is providing technical assistance to affected entities as they work to identify and mitigate any potential compromises.”

The FBI and U.S. National Security Agency did not immediately respond to a request for comment.

There is some indication that the email compromise at NTIA dates back to this summer, although it was only recently discovered, according to a senior U.S. official.

NTIA was among a group of agencies involved in the Trump administration’s effort to ban Chinese social media apps Tiktok and WeChat. The Trump administration has said such apps pose a national security threat. The affected Chinese companies deny the claim.

Reporting by Christopher Bing; Editing by Chris Sanders and Daniel Wallis
 

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UPDATE: it’s russia again



Russian government spies are behind a broad hacking campaign that has breached U.S. agencies and a top cyber firm


The Russian government hackers who breached a top cybersecurity firm are behind a global espionage campaign that also compromised the Treasury and Commerce departments and other government agencies, according to people familiar with the matter, who requested anonymity because of the sensitivity of the matter.

The FBI is investigating the campaign by a hacking group working for the Russian foreign intelligence service, SVR. The group, known among private-sector security firms as APT29 or Cozy Bear, also hacked the State Department and the White House during the Obama administration.

It is not clear what information was accessed.

Reuters first reported the hacks of the Treasury and Commerce agencies Sunday, saying they were carried out by a foreign government-backed group. The SVR link to the broader campaign is previously unreported.

The matter was so serious it prompted an emergency National Security Council meeting on Saturday, Reuters reported.

“The United States government is aware of these reports and we are taking all necessary steps to identify and remedy any possible issues related to this situation,” said NSC spokesman John Ullyot. He would not comment on the country or group responsible.

APT29 has been linked to several has attempted to steal coronavirus vaccine research.
The Washington Post reported last week that the Russian hacking group, APT29, breached the cybersecurity firm, FireEye, according to sources familiar with the report.

[Russian spies believed to have hacked FireEye]
At Commerce, the Russians targeted the National Telecommunications and Information Administration, an agency that handles internet and telecommunications policy, Reuters reported.
The campaign is said to be quite broad, encompassing an array of targets, including government agencies in the United States and other countries. It has been running for months, one person said.

In 2015, the same group compromised the servers of the Democratic National Committee. But unlike a rival Russian spy agency, which also hacked the DNC, it did not leak stolen material. In 2016, the GRU military spy agency leaked hacked emails to the online anti-secrecy organization WikiLeaks in an operation that disrupted the Democrats’ national convention in the midst of the presidential campaign.

The SVR, by contrast, hacks for traditional espionage purposes, stealing information that might help the Kremlin understand the plans and motives of politicians and policymakers. Its operators also have filched industrial secrets, hacked foreign ministries and gone after coronavirus vaccine data.
 
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