How Israel Caught Russian Hackers Scouring the World for U.S. Secrets

The Israeli officials who had hacked into Kaspersky’s own network alerted the United States to the broad Russian intrusion, which has not been previously reported, leading to a decision just last month to order Kaspersky software removed from government computers.

.. More than 60 percent, or $374 million, of the company’s $633 million in annual sales come from customers in the United States and Western Europe.

.. “Antivirus is the ultimate back door,” Blake Darché, a former N.S.A. operator and co-founder of Area 1 Security. “It provides consistent, reliable and remote access that can be used for any purpose, from launching a destructive attack to conducting espionage on thousands or even millions of users.”

.. Kaspersky reported that its attackers had used the same algorithm and some of the same code as Duqu, but noted that in many ways it was even more sophisticated. So the company researchers named the new attack Duqu 2.0, noting that other victims of the attack were prime Israeli targets.

.. Kaspersky uncovered were hotels and conference venues used for closed-door meetings by members of the United Nations Security Council to negotiate the terms of the Iran nuclear deal — negotiations from which Israel was excluded.

.. Kaspersky noted that its attackers seemed primarily interested in the company’s work on nation-state attacks, particularly Kaspersky’s work on the “Equation Group” — its private industry term for the N.S.A. — and the “Regin” campaign, another industry term for a hacking unit inside the United Kingdom’s intelligence agency

.. It is not clear whether, or to what degree, Eugene V. Kaspersky, the founder of Kaspersky Lab, and other company employees have been complicit in the hacking using their products.

.. Mr. Kaspersky, who attended an intelligence institute and served in Russia’s Ministry of Defense, would have few illusions about the cost of refusing a Kremlin request.

Russian Hackers Stole NSA Data on U.S. Cyber Defense

Hackers working for the Russian government stole details of how the U.S. penetrates foreign computer networks and defends against cyberattacks after a National Security Agency contractor removed the highly classified material and put it on his home computer, according to multiple people with knowledge of the matter.

.. The hackers appear to have targeted the contractor after identifying the files through the contractor’s use of a popular antivirus software made by Russia-based Kaspersky Lab, these people said.

.. The Kaspersky incident is the third publicly known breach at the NSA involving a contractor’s access to a huge trove of highly classified materials. It prompted an official letter of reprimand to the agency’s director, Adm. Michael Rogers, by his superiors, people familiar with the situation said.

.. Kaspersky software once was authorized for use by nearly two dozen U.S. government agencies, including the Army, Navy and Air Force, and the departments of Defense, State, Homeland Security, Energy, Veterans Affairs, Justice and Treasury.

.. For years, U.S. national security officials have suspected that Kaspersky Lab, founded by a computer scientist who was trained at a KGB-sponsored technical school, is a proxy of the Russian government, which under Russian law can compel the company’s assistance in intercepting communications as they move through Russian computer networks.
.. All antivirus software scans computers looking for malicious code, comparing what is on the machine to a master list housed at the software company. But that scanning also gives makers of the software an inventory of what is on the computer, experts say.

“It’s basically the equivalent of digital dumpster diving,”

.. Kaspersky is “aggressive” in its methods of hunting for malware, Mr. Darché said, “in that they will make copies of files on a computer, anything that they think is interesting.” He said the product’s user license agreement, which few customers probably read, allows this.

.. “You’re basically surrendering your right to privacy by using Kaspersky software,

The Russian Company That Is a Danger to Our Security

The firm’s billionaire founder, Eugene Kaspersky, graduated from the elite cryptology institute of the K.G.B., the Soviet Union’s main intelligence service, and was a software engineer for Soviet military intelligence. He vehemently dismisses concerns that his company assists Russia’s intelligence agencies with cyberespionage and claims that he is the target of Cold War-style conspiracy theories. But Kaspersky Lab has committed missteps that reveal the true nature of its work with Russia’s Federal Security Service, or F.S.B., a successor to the K.G.B.

Bloomberg recently reported on emails from October 2009 in which Mr. Kaspersky directs his staff to work on a secret project “per a big request on the Lubyanka side,” a reference to the F.S.B.’s Moscow offices. The McClatchy news service uncovered records of the official certification of Kaspersky Lab by Russian military intelligence, which experts in this field call “persuasive public evidence” of the company’s links to the Russian government.

.. The challenge to United States national security grew last year when the company launched a proprietary operating system designed for electrical grids, pipelines, telecommunications networks and other critical infrastructure. The Defense Intelligence Agency recently warned American companies that this software could enable Russian government hackers to shut down critical systems.

.. Beyond the evidence of direct links between Mr. Kaspersky and the Russian government, we cannot ignore the indirect links inherent in doing business in the Russia of President Vladimir Putin, where oligarchs and tycoons have no choice but to cooperate with the Kremlin.

.. Under Russian laws and according to Kaspersky Lab’s certification by the F.S.B., the company is required to assist the spy agency in its operations, and the F.S.B. can assign agency officers to work at the company. Russian law requires telecommunications service providers such as Kaspersky Lab to install communications interception equipment that allows the F.S.B. to monitor all of a company’s data transmissions.

.. Americans were outraged by Russia’s interference in our presidential election, but a wider threat is Russia’s doctrine of hybrid warfare, which includes cybersabotage of critical American infrastructure from nuclear plants to electrical grids. Kaspersky Lab, with an active presence in millions of computer systems in the United States, is capable of playing a powerful role in such an assault.