Security Consulting Company Exposes China Cyber Espionage Threat

Yesterday Mandiant, a security consultancy, published report “APT1: Exposing One of China’s Espionage Units.” The report details the extent and the exploits observed by Mandiant from a single entity – Chinese People’s Army Unit 61398. Mandiant analyzed the group’s intrusions against over 150 victims over 7 years resulting in terrabytes of data stolen from numerous US organizations. According to the National Public Radio (NPR), Chinese government denies any involvement. Mandiant CEO, Kevin Mandia, testified last week during the House Intelligence Committee hearing on the cybersecurity bill. 

SANS SCADA Security Summit Report

SANS held its eighth annual North American Industrial Control System (ICS) & SCADA Security Summit at the Disney Resort in Orlando, FL this week, a venue that uses thousands of control systems every day to ensure the fun and safety of visiting families. The event was chaired by Michael Assante, formerly with the North American Electric Reliability Corporation, Idaho National Lab, and American Electric Power. The two-day event featured presentations and panel discussions on a variety of ICS and SCADA security issues. The audience heard from government, academia, utilities, global companies, product suppliers, and security consultants. The picture that emerged is encouraging and complex at the same time. Today, ICS and SCADA are connected to the Internet, through the corporate networks or through remote vendor connections. There may be legitimate business needs for these connections to provide critical control systems data to the business or to allow global companies conduct exploration activities in remote parts of the world without significant personnel commitment. These connections may also be in place due to the lack of awareness of security implications of such connections without any legitimate business reason. Sometimes these connections are secured and sometimes they are not. ICS and SCADA systems suffer from the phenomenon known as hard shell outside and the soft gooey inside – while the perimeter protection may be strong, once the attacker is inside the perimeter they pretty much can have whatever they want. Some vendors are doing great things and using secure coding practices, secure development lifecycle, and genuinely improving the security state of their products, some are not. Workforce is a serious issue, both in terms of expanding a very small number of dedicated SCADA cybersecurity practitioners, providing general user awareness for those who touch SCADA systems, and increasing technology practitioner knowledge for people who deal with technology that touches or is connected to SCADA but are not SCADA engineers.

Ultimately, it is about people and process! Technology is a distant third. If your people don’t know how to tell a phishing exploit from a legitimate email you are in trouble. Resources need to be invested into educating people and creating resilient agile processes for detection, recovery, and reconstitution, because you will be hacked!

The Summit agenda is available at https://www.sans.org/event-downloads/28439/agenda.pdf. The ninth annual event will be held in Florida March 12-20, 2014, including education sessions before the summit. Any questions about this year’s summit should be directed to Klaus Bender at Klaus.bender@utc.org and Nadya Bartol at Nadya.bartol@utc.org.

SANS SCADA Security Meeting

UTC attended a SANS SCADA Security Call to Action meeting, held ahead of the SANS SCADA Security Summit on February 11, 2013. Mike Assante of the SANS Institute called together this meeting to discuss control systems security and potential community response to helping solve this highly publicized challenge. Discussion included speakers from a variety of government, industry, and academia organizations. The speakers acknowledged the challenge and discussed the progress that is being made to improve the situation. The speakers and the audience also discussed potential solutions. People and process emerged as top needs with technology being a distant third. Speakers unanimously acknowledged that investment in training and awareness of general users is paramount. While they also acknowledged that the Industrial Control Systems (ICS) vendors have begun building in quality and security into their solutions, consensus emerged that further progress needs to be made by a greater number by vendors and user organizations. The discussion also touched on the challenges of demonstrating value of security to the corporate leadership and on the value of collaborating with other practitioner communities, such as emergency management professionals. Participants were requested to provide further input one the specific actionable projects the community could undertake to help improvement.

 

 

SNC Identifies Smart Grid Reference Models as a Project for 2013

The elected board of UTC’s Smart Networks Council (SNC) met this week in Reno, NV. The SNC was formed to bring the resources and knowledge of member utilities and the vendor community together to address technical issues critical to achieving reliable delivery of our critical resources.  Membership and participation in SNC activities are included to all Core and Associate Members of UTC. 

 
The SNC’s board approved a plan address the important issue of navigating multiple smart grid architecture refernece documents, and how these architectures relate to recent field deployments. The output of this effort will be an up-to-date reference architecture providing better system design, estimation, implementation and operation tools used by engineers, operations teams and management alike.  This tool will be able to better explain the many elements of smart grid, how communications connectivity relates to these elements, and how standards can move from guidelines to practice, enabling faster and more cost effective deployments of critical technology.  
 
The work group will examine the smart grid models of the SGIP/UCA and IEEE mapping efforts, the nearly complete ITU model, and identify both commonalities and gaps between these models. Through interviews with utility experts, the vendors community, consulting engineers, and industry experts, the study will analyze real world deployments and compare the resulting systems to reference model for gap analysis and validation. 
 
The board believes that a current reference model based on the initial and emerging architectural frameworks, assessed against field based experience and measures, will be a benefit for utilities seeking to deploy and update their systems in the future.  This work will also assist UTC and its members in validating the spectrum requirements for critical infrastructure entities. 
 
SNC membership is open to all UTC Members including utilities and industry solution providers. Parties interested in participating in this project should contact UTC staff (eric.wagner@utc.org or Klaus.bender@utc.org). 
 

Chinese Hackers Suspected in Cyber Attacks on Three U.S. Newspapers

In rapid succession, the New York Times, The Wall Street Journaland the Washington Post revealed that they were the victims of cyber attacks that originated in China.   In the case of the New York Times, the attacks began in late October, when the paper started reporting about the multi-billion dollar fortune accumulated by the family of the Chinese prime minister, Wen Jiabao. Working with security experts, the Times discovered evidence that Chinese hackers were responsible and that they were using methods associated with the Chinese military.  The hackers reportedly stole the corporate passwords for every Time’s employee and used them to gain access to the personal computers of employees. Among the targets were the paper’s Shanghai bureau chief and the former Beijing bureau chief, but there was no evidence that sensitive email files were affected. 

 
The Wall Street Journal disclosed a day later that it also had fallen victim to Chinese hackers, who were trying to monitor the company’s coverage of China by breaking into the paper’s network through computers in its Beijing bureau. From there, the hackers then reportedly infiltrated the paper's global computer system.
 
The Washington Post made public that it dealt with a similar situation that it remediated at the end of 2011. It appears that those cyber attacks, which started as early as 2008 or 2009, targeted the Post’s main information technology server and several other computers. This allowed the hackers to compromise sensitive administrative passwords, giving them potentially wide-ranging access to the paper’s systems before the computers were taken offline and enhanced monitoring was put in place to prevent a recurrence.
 
Bloomberg LP and Thomson Reuters PLC have also reportedly fallen victim to cyber attacks over the summer.  Google disclosed in 2010 that Gmail accounts of Chinese human rights activists were hacked and investigators were able to trace the source to two educational institutions in China, including one with ties to the Chinese military.
 
An interesting wrinkle in the response to the attacks is that companies took the extremely unusual step to engage the United States government by handing over servers to the National Security Agency and the Department of Defense.
 
While Chinese government officials vehemently deny the allegation that this was a state-sponsored or –sanctioned activity, China’s cyber-espionage assists the government’s broader efforts to quell internal dissent by identifying activists and dissidents and tracking them through their e-mail. "Evidence shows that infiltration efforts target the monitoring of the Wall Street Journal's coverage of China, and are not an attempt to gain commercial advantage or to misappropriate customer information," Paula Keve, a spokeswoman for the paper’s publisher, said.  Grady Summers, a vice president at computer security company Mandiant, said that in general, Chinese government hackers “want to know who the sources are, and who in China is talking to the media. They want to understand how the media is portraying them, what they’re planning and what’s coming.”
 

FirstNet Discusses Progress to Date

 APCO held its Emerging Technology Forum this week in Anaheim. The first day of the conference focused on next generation 9-1-1 and cybersecurity and the second day was spent discussing public safety broadband. Two members of FirstNet, responsible for building the public safety broadband network, provided insight into the progress of the effort to day. Kevin McGinnis and Craig Farrill, the acting general manager of FirstNet were the speakers. 

 

Mr. McGinnis detailed some of the applications in emergency medical services that would be enabled by the FirstNet. Mr. Farrill told the audience that the commercial services members of the FirstNet board seek to build the network as soon as possible. He stressed that FirstNet is intended to serve public safety, not a commercial effort. He said that the network has the potential to be the fourth or five largest wireless network in the country. The group has collected over 1300 requirements for the network, developed by public safety, DHS and NTIA. The architecture for the network, at a high level, will assume that FirstNet will be the primary broadband network, with as many as five wireless carriers to provide backup, followed finally by satellite services to "serve every square meter of the country."

 

When asked what role utilities will have in the network, Mr. Farril acknowledged that a utility representative is on the board and the board understands the resources that utilities can provide to FirstNet, especially in rural areas. But Mr. Farril stated that the board is looking to balance speed to market with adding partners to the network and he said the board anticipates that utilities will be an important part of the network, primarily in rural areas. 

 

The FirstNet board is doing state consultations that will gather each state's expectations for the network, add that to the requirements, and then go back to the states for confirmation. Mr. Farril said each state will have a network operating center (NOC) with the potential for regional NOCs for emergencies like the recent hurricane Sandy disaster. 

In Push for Cybersecurity legislation, DHS Secretary Napolitano Warns of Imminent Cyber Attacks

In a speech at the Woodrow Wilson International Center for Scholars, United States Secretary of Homeland Security, Janet Napolitano likened the potential consequences of the current threat scenario for the critical infrastructure industry to the attacks on September 11, 2011:  A "cyber 9/11" could happen "imminently" and critical infrastructure, including water, electricity and gas, was very vulnerable to such a strike, she said.  The Secretary equated the effects of such a strike to the widespread power outages in the wake of last year’s Superstorm Sandy.  "There are things we can and should be doing right now that, if not prevented, would mitigate the extent of damage,"  Napolitano said, referring to the crippling effects on the U.S. of taking down the power grid, water infrastructure, transportation networks, and financial networks.  Her remarks resemble Unites States Secretary of Defense Leon Panetta’s warnings of a “Cyber Pearl Harbor” during his first major cybersecurity speech last October.

 

The common thread in the Secretaries’ speeches is the call for Congress to pass cybersecurity legislation. The Cybersecurity Act of 2012 never made it out of the Senate, despite bipartisan support there from the President and a letter from current and former Republican high-ranking government officials.  The President is expected to sign an executive order in the next few weeks, proposing a voluntary system to help protect some critical infrastructure and offer incentives to companies that participate. But an executive order can only achieve so much. That’s why Ms. Napolitano called on Congress to pass legislation governing cybersecurity so the government could share information with the private sector to prevent an attack on infrastructure, much of which is privately owned.  Key in the effort to overcome Congressional gridlock will be a solution for the earlier resistance from business groups who said the legislation was government overreach and from privacy groups who feared it might lead to Internet eavesdropping.

Supreme Court Hears Oral Arguments on Issue of Deference to the FCC’s Own Interpretation of Its Authority to Recommend Timelines

 

In a landmark case for administrative law, the Supreme Court of the United States is addressing the question whether courts should defer to an administrative agency such as the Federal Communications Commission when it determines the scope of its own jurisdiction.  
 
On January 18, 2013 the Supreme Court heard oral arguments in in City of Arlington v. FCC  in which the petitioners challenged the Commission’s 2009 declaratory ruling setting timelines for local zoning authorities to approve permits for wireless facilities, such as towers.   The FCC claimed that it had jurisdiction to impose a so-called “shot-clock” based on its general authority under the Communications Act, even though specific provisions within the Communications Act of 1934 as amended preserve state and local jurisdiction over the siting of wireless facilities under several conditions including action on such requests “within a reasonable period of time”.  
 
While courts are generally required to defer to an agency’s reasonable interpretation of its statutory authority when the provisions are vague or ambiguous under a two-part test laid out in Chevron v. U.S.A., Inc. v. Natural Res. Def. Council, the central question in the case here before the Supreme Court is whether Chevron applies when an agency is interpreting its own jurisdiction and if so how courts should apply the test.  Under the two-part test in Chevron, "First, always, is the question whether Congress has spoken directly to the precise question at issue. If the intent of Congress is clear, that is the end of the matter; for the court as well as the agency must give effect to the unambiguously expressed intent of Congress. If the statute is silent or ambiguous with respect to the specific question, the issue for the court is whether the agency's answer is based on a permissible construction of the statute."
 
During oral arguments, Petitioners’ counsel Thomas C. Goldstein posited that this was the wrong standard, and that Congress did not give the FCC power to set the timelines for tower siting. “The question is, do we have to, when the statute is ambiguous, as it will often be, accept as a matter of law their view that they do have jurisdiction,” Goldstein said.
 
The Solicitor General of the United States, Donald B. Verrilli, Jr., maintained that agencies should not have to distinguish between jurisdictional and non-jurisdictional issues.  “Chevron does provide a stable framework for the development of administrative law,” he said and warned of the “ossification of the administrative process” if courts were called upon to review every agency decision and interpret the respective statutes.  
 
Without engaging in speculation on the final outcome of the case, it seems that Justices were not particularly eager to reverse the original decision of the Fifth Circuit appeals court, which upheld the FCC’s declaratory ruling. Justice Antonin Scalia stated that “The jurisdictional question, like any other question is to be decided with deference to the agency” and Justices Sonia Sotomayor, Elena Kagan and Stephen G. Breyer seemed to agree. Chief Justice John G. Roberts, Jr. suggested that federal courts were in a better position to define the limits between state and federal power than “an agency of unelected bureaucrats.”
 
The decision could have larger implications for the Commission and other agencies. For example, matters such as pole attachments, net neutrality and other matters involving statutory interpretation could be significantly limited, if courts limit their deference to the FCC on appeal.   A decision is expected by the end of June.

 

FCC Defines Temporary Protection to Non-compliant Land Mobile Systems

 

This week, the land mobile frequency coordinators met with the FCC to discuss how to handle licenses for systems in the VHF and UHF band that did not comply with the January 1, 2013 narrowband deadline. In late 2012, the land mobile frequency coordinators recommended to ignore these systems when coordinating the new systems after February 1, 2013. 

 

At the meeting this week, the FCC said most licenses are now narrowband compliant and that the FCC is still getting waiver requests for the narrowband deadline. The Commission staff urged licensees that may have narrowbanded but did not file an application to file it now. The staff said that the Gettysburg licensing facility has a large backlog of applications related to the deadline. The FCC will likely take until the end of the first quarter to clear some of these applications. At that time, they will consider an audit of non-compliant systems, giving those licensees one last chance to comply or cancel their licenses. The FCC would also like to establish a single point of contact at its Enforcement Bureau related to narrowband compliance issues, but has yet to do so. 

 

In the meantime, per FCC attorneys--the coordinators cannot just ignore those licenses. Until further notice, these non-compliant wide band systems will be considered as analog compliant narrowband with an emission designator similar to 11K2F3E. Another FCC public notice will released as soon as possible detailing FCC plans.  

 

SGIP Calls for Votes on New Standards

 While the Smart Grid Interoperability Panel (SGIP) transitions from NIST funding to a non-profit, privately funded status in 2013, the organization continues to add board approved standards to the Catalog of Standards (CoS). This week the SGIP board called for votes to add thirteen new standards to those already approved. Included among the group are NAESB 21 and 22, dealing with the NAESB Energy Usage Information (EUI) Model and voluntary Model Business Practices for Third Party access to Smart Meter-based information. These standards are integral in the deployment of the Green Button that allows consumers to download energy information in standardized formats. Also included are the IEC 62351 series for information security for power system control operations.

Four standards are proposed related to power line carrier (PLC) technology for home area networking and other applications. ITU-T G.9960 specifies the system architecture and physical (PHY) layer for wireline based home networking transceivers capable of operating over premises wiring including inside telephone wiring, coaxial cable, and power-line wiring. ITU-T G.9972 specifies a coexistence mechanism for networking transceivers capable of operating over electrical powerlines. IEEE 1901-2010 defines a standard for high-speed communication devices via electric power lines, so-called broadband over power line (BPL) devices. This standard focuses on the balanced and efficient use of the power line communications channel by all classes of BPL devices. NISTIR 7862 - Power Line Communication (PLC) systems provide a bi-directional communication platform capable of delivering data for a variety of Smart Grid applications such as home energy management and intelligent meter reading and control.

Finally, NIST proposes adding AEIC Guidelines - SmartGrid/AEIC AMI Interoperability Standard Guidelines for ANSI C12.19 / IEEE 1377 / MC12.19 End Device Communications and Supporting Enterprise Devices, Networks and Related Accessories.  The objective was to develop a smaller set of data Tables that meet the needs of most utilities and simplify the meter procurement process.

 

The SGIP Governing Board is recommending a NO vote on the AEIC Guidelines, but recommending the others be added to the Catalog of Standards. We urge all SGIP members in good standing to review and cast their votes. Questions should be directed to UTC’s engineering and regulatory staff.

Source: SGIP Email, January 7, 2013 

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