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US strategic advantage depends upon addressing cybersecurity vulnerabilities of weapon systems

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Russia’s war with Ukraine is an act of ruthless ambition exemplifying the commitment of President Vladimir Putin to achieve “victory” at all costs. The motions of a hybrid war are in swing, as we witness the fusion of conventional and unconventional tools of conflict on the battlefield. Russian state-backed actors have employed cyber operations to disrupt, degrade, and deny Ukrainian infrastructure, including its power grid, transportation networks, and satellite communications. Encoded in Russian cyber doctrine is the reliance on asymmetric tactics to create parity with, or gain advantage over, adversaries. As the conflict fans wider and deeper, U.S. defenders and policymakers must consider additional nonconventional capabilities Russia may implement to gain battlefield advantage. One such possibility is the use of cyberattacks against modern Western weapon systems.
Many weapons systems are built upon technologies that carry inherent digital vulnerabilities, making them susceptible to cyberattack. As the possibility of a miscalculation that results in a NATO/Russia confrontation increases, so does the risk of exposure of such digital weaknesses.
Power to create improvements in weapon system cybersecurity exists within the U.S. Congress; however, with each passing fiscal year, policymakers lose opportunity to buy down the fiscal burden of remediation. Known digital vulnerabilities in Joint Force weapon systems introduce unintended and unrealized risk from technologically advanced adversaries, and Congress has the opportunity to address them in the National Defense Authorization Act (NDAA) for Fiscal Year 2023.
The seminal 2018 Government Accountability Office (GAO) report, “Weapon Systems Cybersecurity: DOD Just Beginning to Grapple with Scale of Vulnerabilities” represents an inflection point. The report revealed mission-critical cyber vulnerabilities in nearly all developmental and prototyped Department of Defense weapon systems. Declassified examples aren’t rare:
There are a number of challenges that make weapon systems difficult to secure. Supply chain disruptions, and compatibility and maintenance supportability of systems with decades-long lifecycles are some. The modernization of legacy weapon system technology with bolt-on information technology (IT) and operational technologies (OT) is another. OT components control the most sensitive functions of aircraft, ground combat vehicles, and artillery, like engine and transmission controllers and braking systems. Converged OT and IT are under-secured, creating opportunities for adversaries to penetrate critical environments, move laterally across defense networks, and wreak havoc on operations.
National Cyber Director Chris Inglis recently said enhanced scrutiny must be applied to OT as “critical functions depend upon that to an even greater degree than they do upon general-purpose IT.”
Beginning with the FY 2016 NDAA, Congress has directed multiple reports aimed at scoping the extent of digital vulnerabilities of DOD weapon systems; however, it has failed to assign accountability measures or appropriate commensurate funding to remediate them.
There are several instances of congressional efforts to drive awareness. The House Armed Services Future of Defense Task Force issued a 2020 report concluding the volume of vulnerabilities within weapon systems, compared to the threat from adversaries, presents a national security risk. The 2020 Cyberspace Solarium Commission legislative proposal recommended DOD assess and address cyber vulnerabilities of weapon systems annually.
This year, the Undersecretary of Defense for Research and Engineering and Chief Technology Officer for the DOD released a memo unveiling a National Defense Science and Technology Strategy to strengthen U.S. military technology.
Notably, a 2022 letter from a bipartisan group of House Armed Services Committee (HASC) members commended the Department for efforts to ensure new weapon systems are developed with OT vulnerabilities in mind, reiterating the need for further work to address weaknesses in systems.
U.S. Representative Jim Langevin, outgoing Chairman for HASC’s Cyber, Innovative Technologies, and Information Systems (CITI) subcommittee recently stated, it’s time to move “from admiring the problem of cybersecurity to providing actionable solutions.”
There are promising homegrown initiatives emerging across the DOD, commercial providers developing innovative technologies, and ongoing military training to enable weapon system operators. For instance, this years’ Emerald Warrior exercise simulated cyberattacks within aircraft operations for the first time.
Such initiatives are important, but more is needed from the 2023 NDAA.
Expand existing programs: Given the evolving threat landscape and OT commonality among platforms, DOD should expand programs to cover a wider range of systems and establish plans to address cybersecurity vulnerabilities on older systems. At the core of these plans should be robust monitoring and discovery programs.
Include remediation upfront: Congress should approve language for inclusion in the NDAA around remediation for cyber incidents, and finalization of commercial technology maturation and expansion into DOD programs and weapon systems.
Create a baseline: Congress should include language directing the DOD to address serial data network vulnerabilities, certify a baseline to track technological improvements, and build upon efforts to reduce cybersecurity risk.
Accountability measures: Codify mechanisms to assess progress against legislative and policy requirements. Such efforts would hold DOD responsible for ensuring the security and readiness of Joint Force Weapon Systems.
Russia’s willingness to engage in Ukraine, coupled with the potential for miscalculation on the battlefield that draws in NATO, increases the urgency by which Congress and the DOD should secure weapon systems from cyberattack.
Few would argue that maintaining control of weapons systems is a national security imperative to address immediately. Congress and the DOD should work diligently and quickly to require, fund, and deploy cyber security solutions that protect U.S. weapon systems as soon as possible.
Whether a B-52 or Stryker, fully remediating legacy and modern weapons systems across the Joint Force requires investment today to ensure U.S. and NATO maintain a strategic advantage if called upon to perform operations tomorrow.

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Prosecutors seek from 40 to 50 years in prison for Sam Bankman-Fried for cryptocurrency fraud

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Prosecutors seek from 40 to 50 years in prison for Sam Bankman-Fried for cryptocurrency fraud

By LARRY NEUMEISTER

NEW YORK (AP) — FTX founder Sam Bankman-Fried’s orchestration of one of history’s largest financial frauds in his quest to dominate the cryptocurrency world deserves a prison sentence of 40 to 50 years, federal prosecutors on Friday told a federal judge.

Prosecutors made the recommendation in papers filed in Manhattan federal court in advance of a March 28 sentencing, where a judge will also consider a 100-year prison sentence recommended by the court’s probation officers and a request by defense lawyers for leniency and a term of imprisonment not to exceed single digits.

Bankman-Fried, 32, was convicted in November on fraud and conspiracy charges after his dramatic fall from a year earlier when he and his companies seemed to be riding a crest of success that had resulted in a Super Bowl advertisement and celebrity endorsements from stars like quarterback Tom Brady and comedian Larry David.

Some of his biggest successes, though, resulted from stealing at least $10 billion from investors and customers between 2017 and 2022 to buy luxury real estate, make risky investments, dispense outsized charitable donations and political contributions and to buy praise from celebrities, prosecutors said.

 

FILE - Sam Bankman-Fried leaves Manhattan federal court in New York on Feb. 16, 2023. Bankman-Fried's lawyers are seeking leniency next month at the FTX founder's sentencing for cryptocurrency crimes. The lawyers filed presentence arguments late Monday, Feb. 26, 2024, in Manhattan federal court. (AP Photo/Seth Wenig, File)

 

“His life in recent years has been one of unmatched greed and hubris; of ambition and rationalization; and courting risk and gambling repeatedly with other people’s money. And even now Bankman-Fried refuses to admit what he did was wrong,” prosecutors wrote.

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“Having set himself on the goal of amassing endless wealth and unlimited power — to the point that he thought he might become President and the world’s first trillionaire — there was little Bankman-Fried did not do to achieve it,” prosecutors said.

They said crimes reflecting a “brazen disrespect for the rule of law” had depleted the retirement funds and nest eggs of people who could least afford to lose money, including some in war-torn or financially insecure countries, and had harmed others who sought to “break generational poverty” only to be left “devastated” and “heartbroken.”

“He knew what society deemed illegal and unethical, but disregarded that based on a pernicious megalomania guided by the defendant’s own values and sense of superiority,” prosecutors said.

Bankman-Fried was extradited to the United States in December 2022 from the Bahamas after his companies collapsed a month earlier. Originally permitted to remain at home with his parents in Palo Alto, California, he was jailed last year weeks before his trial after Judge Lewis A. Kaplan concluded that he had tried to tamper with trial witnesses.

In their presentence submission, prosecutors described Bankman-Fried’s crimes as “one of the largest financial frauds in history, and what is likely the largest fraud in the last decade.”

“The defendant victimized tens of thousands of people and companies, across several continents, over a period of multiple years. He stole money from customers who entrusted it to him; he lied to investors; he sent fabricated documents to lenders; he pumped millions of dollars in illegal donations into our political system; and he bribed foreign officials. Each of these crimes is worthy of a lengthy sentence,” they wrote.

They said his “unlawful political donations to over 300 politicians and political action groups, amounting to in excess of $100 million, is believed to be the largest-ever campaign finance offense.”

And they said his $150 million in bribes to Chinese government officials was one of the single largest by an individual.

“Even following FTX’s bankruptcy and his subsequent arrest, Bankman-Fried shirked responsibility, deflected blame to market events and other individuals, attempted to tamper with witnesses, and lied repeatedly under oath,” prosecutors said, citing his trial testimony.

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Two weeks ago, Bankman-Fried attorney Marc Mukasey attacked a probation office recommendation that their client serve 100 years in prison, saying a sentence of that length would be “grotesque” and “barbaric.”

He urged the judge to sentence Bankman-Fried to just a few years behind bars after calculating federal sentencing guidelines to recommend a term of five to 6 1/2 years in prison.

“Sam is not the ‘evil genius’ depicted in the media or the greedy villain described at trial,” Mukasey said, calling his client a “first-time, non-violent offender, who was joined in the conduct at issue by at least four other culpable individuals, in a matter where victims are poised to recover — were always poised to recover — a hundred cents on the dollar.”

Mukasey said he will respond to the prosecutors’ claims in a filing next week.

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Biden to create cybersecurity standards for nation’s ports as concerns grow over vulnerabilities

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Biden to create cybersecurity standards for nation’s ports as concerns grow over vulnerabilities

WASHINGTON (AP) — President Joe Biden on Wednesday signed an executive order and created a federal rule aimed at better securing the nation’s ports from potential cyberattacks.

The administration is outlining a set of cybersecurity regulations that port operators must comply with across the country, not unlike standardized safety regulations that seek to prevent injury or damage to people and infrastructure.

“We want to ensure there are similar requirements for cyber, when a cyberattack can cause just as much if not more damage than a storm or another physical threat,” said Anne Neuberger, deputy national security adviser at the White House.

Nationwide, ports employ roughly 31 million people and contribute $5.4 trillion to the economy, and could be left vulnerable to a ransomware or other brand of cyberattack, Neuberger said. The standardized set of requirements is designed to help protect against that.

The new requirements are part of the federal government’s focus on modernizing how critical infrastructure like power grids, ports and pipelines are protected as they are increasingly managed and controlled online, often remotely. There is no set of nationwide standards that govern how operators should protect against potential attacks online.

The threat continues to grow. Hostile activity in cyberspace — from spying to the planting of malware to infect and disrupt a country’s infrastructure — has become a hallmark of modern geopolitical rivalry.

For example, in 2021, the operator of the nation’s largest fuel pipeline had to temporarily halt operations after it fell victim to a ransomware attack in which hackers hold a victim’s data or device hostage in exchange for money. The company, Colonial Pipeline, paid $4.4 million to a Russia-based hacker group, though Justice Department officials later recovered much of the money.

Ports, too, are vulnerable. In Australia last year, a cyber incident forced one of the country’s largest port operators to suspend operations for three days.

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In the U.S., roughly 80% of the giant cranes used to lift and haul cargo off ships onto U.S. docks come from China, and are controlled remotely, said Admiral John Vann, commander of the U.S. Coast Guard’s cyber command. That leaves them vulnerable to attack, he said.

Late last month, U.S. officials said they had disrupted a state-backed Chinese effort to plant malware that could be used to damage civilian infrastructure. Vann said this type of potential attack was a concern as officials pushed for new standards, but they are also worried about the possibility for criminal activity.

The new standards, which will be subject to a public comment period, will be required for any port operator and there will be enforcement actions for failing to comply with the standards, though the officials did not outline them. They require port operators to notify authorities when they have been victimized by a cyberattack. The actions also give the Coast Guard, which regulates the nation’s ports, the ability to respond to cyberattacks.

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Why Was Sam Altman Fired? Possible Ties to China D2 (Double Dragon) Data from Hackers

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Theories are going around the internet why Sam Altman was fired. On an insider tech forum (Blind) – one person claims to know by third-hand account and how this news will trickle into the media over the next couple of weeks.

It’s said OpenAI had been using data from D2 to train its AI models, which includes GPT-4. This data was obtained through a hidden business contract with a D2 shell company called Whitefly, which was based in Singapore. This D2 group has the largest and biggest crawling/indexing/scanning capacity in the world 10x more than Alphabet Inc (Google), hence the deal so Open AI could get their hands on vast quantities of data for training after exhausting their other options.

The Chinese government became aware of this arrangement and raised concerns with the Biden administration. As a result, the NSA launched an investigation, which confirmed that OpenAI had been using data from D2. Satya Nadella, the CEO of Microsoft, which is a major investor in OpenAI, was informed of the findings and ordered Altman’s removal.

There was also suggestion that Altman refused to disclose this information to the OpenAI board. This lack of candor ultimately led to his dismissal and is what the board publicly alluded to when they said “not consistently candid in his communications with the board.”

To summarize what happened with Sam Altman’s firing:

1. Sam Altman was removed from OpenAI due to his ties to a Chinese cyber army group.

2.OpenAI had been using data from D2 to train its AI models.

3. The Chinese government raised concerns about this arrangement with the Biden administration.

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4. The NSA launched an investigation, which confirmed OpenAI’s use of D2 data.

5. Satya Nadella ordered Altman’s removal after being informed of the findings.

6. Altman refused to disclose this information to the OpenAI board.

 

We’ll see in the next couple of weeks if this story holds up or not.

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