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http://blog.wired.com/27bstroke6/2008/05/commerce-depart.html



By Kim Zetter

Threat Level

Wired.com

May 30, 2008



Fellow Threat Leveler Kevin Poulsen effectively took the wind out of

sources in a recent National Journal story who suggested that the

Chinese were to blame for the 2003 northeast blackout. The Journal cited

information gleaned secondhand from unnamed intelligence sources to

proffer the speculation.



But at least one bit of other information in the article has been

pursued by the Associated Press . . . though to inconclusive results.

That information pertains to an unnamed source who told the Journal that

Commerce Secretary Carlos M. Gutierrez was the target of cyberespionage

in China during a visit there last December for trade talks.



The Journal cites an unnamed computer security expert who says spyware

was discovered on "devices" used by Gutierrez and other Commerce

officials during the China trip, but isn't specific about the equipment

that was targeted and seems careful to say that the unnamed expert has

firsthand knowledge of the kind of spyware discovered, rather than

saying he has firsthand knowledge of their actual discovery on Commerce

equipment.



During a trip to Beijing in December 2007, spyware programs designed

to clandestinely remove information from personal computers and

other electronic equipment were discovered on devices used by

Commerce Secretary Carlos Gutierrez and possibly other members of a

U.S. trade delegation, according to a computer-security expert with

firsthand knowledge of the spyware used. . . . According to the

computer-security expert, the spyware programs were designed to open

communications channels to an outside system, and to download the

contents of the infected devices at regular intervals. The source

said that the computer codes were identical to those found in the

laptop computers and other devices of several senior executives of

U.S. corporations who also had their electronics "€œslurped"€ while

on business in China.



An Associated Press story written by Ted Bridis confirms that U.S.

authorities are suspicious that Gutierrez might have been targeted and

have launched an investigation, but it doesn't mention spyware in

relation to the investigation. The piece mentions that Gutierrez may

have left his laptop unattended at some point during his China trip and

there's concern that the Chinese copied its contents to try to access

the Commerce Department's network, presumably to uncover proprietary

information about U.S. technologies as well as to gain information it

could leverage against the U.S. in trade talks.



The piece doesn't say why authorities suspect the laptop was

compromised, although it mentions that since Gutierrez returned from

China, the U.S. Computer Emergency Readiness Team of forensic experts

has rushed to the Commerce Department a number of times to respond to

serious attempts at data break-ins. A spokesman for the Department of

Homeland Security notes, however, that "there's nothing to substantiate

an actual compromise at this time"; and that although US-CERT workers

visited the Commerce Department eight times since December, none of

those visits related to laptops or the secretary's trip to China.



The AP piece does mention spyware, though not in relation to Gutierrez.

It recounts a story told during a speech last December by senior U.S.

intelligence official Joel F. Brenner. Brenner said an American

financial executive detected attempts to remotely implant monitoring

software on his PDA during a visit to Beijing. The unnamed executive

"counted five beacons popped into his PDA between the time he got

off his plane in Beijing and the time he got to his hotel room,"

according to Brenner's account. It's unclear if this executive is one of

the same senior U.S. executives mentioned by the unnamed Journal; source

in his account of U.S. businessmen who discovered spyware on their

computing devices while in China.



So is all of this part of a government effort to hype the China cyber

threat? Who knows.



The AP says that "Commerce Department break-ins have been so serious

that its Bureau of Industry and Security, which regulates exports of

sensitive technology that might be used in weapons, effectively

unplugged itself from the Internet."







_______________________________________________

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