House Intel Committee passes FY18 Intelligence Authorization

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On July 14, by a consistent voice vote, the House Permanent Select Committee on Intelligence announced the Intelligence Authorization Act for Fiscal Year 2018 (H.R. 3180) to the full House of Representatives.

As indicated by the advisory group, this enactment gives the Intelligence Community (IC) the vital assets and specialists to guarantee they stay fit for ensuring and shielding the United States.

The bill underpins basic national security programs, especially those concentrated on countering psychological oppression and cyberattacks. The aggregate financing levels approved by the bill are somewhat underneath the president’s financial plan, adjusting monetary train and national security. This enactment:

Centers the Defense Intelligence Agency (DIA) on center missions by dispensing with a few DIA segments and works or realigning them to other IC components;

Protects against outside dangers to races by requiring the Director of National Intelligence to electronically distribute an unclassified consultative give an account of remote counterintelligence and cybersecurity dangers to decision battles for government workplaces;

Reinforces insight oversight by guaranteeing that IC contractual workers can meet uninhibitedly with Congress; and

Enhances IC responsibility to Congress by requiring the IC to give gives an account of:

Examinations of breaks of arranged data;

Trusted status handling courses of events;

The procedure for checking on data about PC vulnerabilities for maintenance or potential discharge; and

Russian impact crusades coordinated at remote races and risk back exercises.

The Act rolls out no improvements to any reconnaissance specialists, including those set to terminate in the not so distant future, which will be tended to in isolated enactment.

Director Devin Nunes stated: “when our country confronts significant national security challenges from fear based oppressor bunches and in addition country expresses, it’s vital that the Intelligence Community get every one of the assets it needs to carry out its employment while Congress has the vital instruments to complete thorough oversight of its work. This bill will guarantee that our insight experts have the greatest shot of achievement in ruining outside dangers.”

Positioning Member Adam Schiff stated: “Our country confronts a various and developing exhibit of dangers, and it is more imperative than any other time in recent memory that we give the knowledge offices the assets, experts and capacities they have to secure our country, while additionally guaranteeing we ensure our protection and common freedoms. This bill is the result of months of oversight and examination and a bipartisan sense of duty regarding the country’s security. I anticipate taking the bill up on the House floor and to its inevitable entry.”

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Public Intelligence – Nation-State Cyber Actors Focused on “Maintaining Persistent Access” to U.S. Energy Infrastructure

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Damaging cyber attacks against the U.S. energy infrastructure do not currently pose a significant threat according to an intelligence assessment released by the Department of Homeland Security and Industrial Control Systems Computer Emergency Response Team (ICS-CERT) in January. While cyber actors backed by a number of nation-states are actively “targeting US energy sector enterprise networks,” these activities are focused primarily on supporting cyber espionage activities to acquire and maintain “persistent access to facilitate the introduction of malware” in the event of “hostilities with the United States.”

The restricted DHS assessment titled “Damaging Cyber Attacks Possible but Not Likely Against the US Energy Sector” was obtained by Public Intelligence and reveals that at least seventeen intrusions against the U.S. energy sector were traced back to APT actors in FY 2014. The attacks never resulted in damage or disruption, but were instead focused on “data theft from enterprise networks” and “accessing and maintaining presence on ICS” networks and systems. One example cited in the assessment is a piece of malware called Havex that was “likely developed by Russian state-sponsored cyber actors.” The existence of the malware was first disclosed in a June 2014 blog post by Finnish security firm F-Secure which described how the remote access tool (RAT) was being used as part of an industrial espionage campaign. DHS states that this campaign dates back to 2011 and that while the “main function is to gather information,” Havex can also run “specialized plug-ins for additional capabilities.”

The assessment also mentions an attack on the Ukrainian energy sector in December 2015 that resulted in at least 80,000 customers losing power for up to six hours. At the time the assessment was written, ICS-CERT stated that they were “unable to confirm” the event was triggered by cyber means, but that a sample of the malware provided by the Ukranian Government had the capability to “enable remote access and delete computer content, including system drives.” While DHS does not attribute the attack to any specific cyber actor, the assessment states that the attack is “consistent with our understanding of Moscow’s capability and intent, including observations of cyber operations during regional tensions.”

A month after the DHS assessment was published, ICS-CERT released an alert describing the attack in much greater detail and relaying the findings of a team that included representatives of the U.S. Computer Emergency Readiness Team (US-CERT), Department of Energy, FBI and North American Electric Reliability Corporation. The alert increased the number of those affected by the attack to more than 225,000 customers, noting that the attack was “reportedly synchronized and coordinated, probably following extensive reconnaissance of the victim networks.” The attackers reportedly “acquired legitimate credentials and leveraged valid remote access pathways” to cause 50 regional substations to experience “malicious remote operation of their breakers conducted by multiple external humans.”

ICS-CERT also released a restricted version of the alert marked For Official Use Only that included non-public details and analysis of the vulnerabilities exposed by the attack. An updated version of the restricted alert from March was also obtained by Public Intelligence and states that “critical infrastructure [industrial control system or ICS] networks, across multiple sectors, are vulnerable to similar attacks.” ICS-CERT argues that the “incident highlights the urgent need for critical infrastructure owners and operators across all sectors to implement enhanced cyber measures that reduce risks” that could result from the use of a number of different techniques that were employed by the attackers, including:

• Theft of legitimate user credentials to enable access masquerading as approved users,
• Leveraging legitimate remote access pathways (VPNs),
• The remote operation of human-machine interface (HMI) via company installed remote access software (such as RDP, TeamViewer or rlogin)
• The use of destructive malware such as KillDisk to disable industrial control systems (ICSs) and corporate network systems
• Firmware overwrites that disable/destroy field equipment
• Unauthorized scheduled disconnects of uninterruptable power supplies (UPS) to devices to deny their availability
• The delivery of malware via spear-phishing emails and the use of malicious Microsoft Office attachments
• Use of Telephone Denial of Service (TDoS) to disrupt operations and restoration.

During the attacks, “remote human operators” accessed the workstations of dispatchers at the facilities using legitimately installed tools for remote access. They used this access to trip the breakers, change the passwords for key systems, corrupt firmware of serial-to-ethernet converters used for substation communication and leverage backup battery systems to trigger shutdowns of connected servers and devices. In one instance, the attackers used an uninterruptible power supply (UPS) to target an internal telecommunications server which cut off “all internal communications with regional offices and distribution substations.”

Despite the risks demonstrated in the Ukrainian attack, the DHS assessment from January tries to downplay the threat posed by state actors, noting that 63 percent of malicious cyber activity in FY 2014 was “unattributed, low-level activity” related to cybercrime using methods such as ransomware and denial-of-service attacks. The assessment’s authors also include a section criticizing the media’s over-hyping of cyber attacks and cyber warfare as leading to “misperceptions about the cyber threat to the US energy sector.” The term “cyber attack” is often used by the media and private sector to refer to incidents and activities that are not necessarily intended to “cause denial, disruption, destruction, or other negative effects” which would better be described as “cyber espionage, and even low-level, untargeted incidents of cybercrime.” The assessment even speculates that overuse of the term could lead to “alarm fatigue” which could lead to less reporting of incidents and longer response times.

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Public Intellligence – DHS Infrastructure Protection Report: Elementary and Secondary Schools

DHS Infrastructure Protection Report Series

2 pages
For Official Use Only
September 15, 2011

Approximately fifty million students attend nearly 100,000 public elementary and secondary schools throughout the Nation. Elementary and secondary schools are relatively open-access, limited egress congregation points for children, and have been successfully targeted by terrorists in the past.

Potential Indicators of Terrorist Activity

Terrorists have a wide variety of weapons and tactics available to achieve their objectives. Specific threats of most concern to schools include:

Small arms attack

Improvised explosive devices (IEDs)

Vehicle-borne improvised explosive devices (VBIEDs)

Arson or incendiary attack

Chemical or biological attack

Terrorist activity indicators are observable anomalies or incidents that may precede a terrorist attack. Indicators of an imminent attack requiring immediate action may include the following:

Persons in crowded areas (e.g., school auditorium, cafeteria, athletic facilities) wearing unusually bulky clothing that might conceal suicide explosives or weapons

Vehicles approaching the school at an unusually high speed or steering around barriers and traffic controls

Suspicious or illegally parked vehicles on or near school grounds

Unattended packages (e.g., backpack, briefcase, box) that may contain explosives. Packages may be left in open areas or may be hidden in trash receptacles, lockers, or similar containers.

Evidence of unauthorized access to heating, ventilation, and air-conditioning (HVAC) areas of a school; indications of unusual substances near air intakes

Suspicious packages and/or letters received by mail that might contain explosives or chemical/biological/ radiological agents.

Indicators of potential surveillance by terrorists include:

Persons using or carrying video/camera/observation equipment in or near the school over an extended period

Persons parking, standing, or loitering in the same area over a multiple-day period with no reasonable explanation

Persons questioning school employees off-site about practices pertaining to the school and its operations

Persons discovered with school maps, photos, or diagrams with key components or sensitive areas highlighted

Suspicious personal e-mail, telephone, fax, or postal mail requests for information about the school or its operations

A noted pattern of false alarms requiring a response by law enforcement or emergency services

Threats by telephone, mail, or e-mail and/or increase in reports of threats from known reliable sources

Common Vulnerabilities

The following are key common vulnerabilities of elementary and secondary schools:

Relatively open access to school grounds and buildings

Limited or no vehicle access controls

Large concentrations of students gathering in open areas outside school buildings on a regular and readily observable schedule

Proximity of schools and neighboring facilities, especially in urban areas

Limited or no inspection of students’ personal articles, particularly in lower-crime areas

Limited security on school buses

Protective Measures

Protective measures include equipment, personnel, and procedures designed to protect a facility against threats and to mitigate the effects of an attack. Protective measures for elementary and secondary schools include:

Planning and Preparedness

Designate an employee as security director to develop, implement, and coordinate all security-related activities

Conduct security audits on a regular and continuing basis. Develop a comprehensive security plan and emergency response plan for the school

Conduct regular exercises of emergency plans

Establish liaison and regular communication with local law enforcement and emergency responders

Personnel

Conduct background checks on all school employees

Incorporate security into employee training programs

Provide security information and training to all students

Access Control

Define the facility perimeter and areas within the facility that require access control. Maintain building access points to the minimum needed

Issue photo identification badges to all school employees and students

Require visitors check in with the front office upon arrival and departure

Provide visitors with school issued identification badges when on school grounds.

Positively identify all vehicles and drivers that enter the school parking lots

Institute a policy restricting other vehicles from accessing the bus-loading zone

Secure ladders, awnings, and parapets that provide access to building roofs, HVAC systems, and other critical equipment

Barriers

Install appropriate perimeter barriers and gates. Maintain clear area at perimeter barriers to enable continuous monitoring and to inhibit concealment of people or packages

Establish a clear zone adjacent to buildings. Keep zone free of vegetation and other obstructions

Install barriers to protect doors and windows from small arms fire and explosive blast effects

Communication and Notification

Install system(s) that provide communication with all people at the school, including employees, students, emergency response teams, and visitors

Develop a plan for communicating with parents during emergency situations

Develop a notification protocol that outlines who should be contacted in emergencies.

Develop a procedure for communicating with the public and the media regarding security issues

Monitoring, Surveillance, Inspection

Evaluate needs and design a monitoring, surveillance, and inspection program

Provide visual surveillance capability (e.g., designated surveillance points, cleared lines of sight)

Install intrusion detection and alarm systems

Deploy personnel assigned to security duty to regularly inspect sensitive or critical areas

Continuously monitor all people entering and leaving the facility for suspicious behavior

Continuously monitor all vehicles approaching the facility for signs of threatening behavior

Infrastructure Interdependencies

Ensure that the school has adequate utility service capacity to meet normal and emergency needs

Ensure that employees are familiar with how to shut off utility services

Provide adequate physical security for utility services

Cyber Security

Develop and implement a security plan for computer and information systems hardware and software

Maintain a well-trained computer security staff

Incident Response

Ensure that an adequate number of emergency response personnel are on duty and/or on call

Provide training and equipment to emergency response personnel to enable them to deal with terrorist-related incidents

Check the status of all emergency response equipment and supplies on a regular basis

Develop a plan for discharging students following incident resolution

Public Intelligence – National Counterterrorism Center Says IED Precursors Widely Available in U.S.

A video posted on YouTube shows 4 pounds of tannerite and 3 gallons of gasoline being detonated inside of a refrigerator. A March 2013 bulletin from the FBI warned that materials like tannerite, used for exploding targets, and other commercial products could provide alternative sources of ammonium nitrate and precursor material used to manufacture improvised explosive devices (IEDs).

Public Intelligence

The National Counterterrorism Center (NCTC) warned in November of last year that precursor components needed to produce improvised explosive devices (IEDs) are “widely and legally available in sufficient quantities through a variety of sources” in the U.S. and are difficult to regulate due to their legitimate uses.

Last fall the NCTC conducted a “facilitated brainstorming session” on domestic terrorism in order to identify “the most common misconceptions about conventional Homeland plotting” based on “inquiries received from Federal, state, local, tribal, and private-sector consumers and from articles published by outside experts and in the media.” NCTC analysts determined the six most common misconceptions and compared these against current analytical trends. In a bulletin detailing the NCTC’s findings, one of the most common misconceptions listed is the belief that precursors needed to manufacture improvised explosives are “difficult to legally acquire in the US without raising suspicion.” The bulletin adds that public “reporting and unclassified government assessments that highlight regulations and law enforcement ‘tripwires’ designed to prevent the acquisition of explosives precursor material give an incomplete depiction of the availability of explosive material.” In fact, the bulletin states that many of the “precursors used to construct IEDs are widely and legally available in sufficient quantities through a variety of sources because their legitimate uses hinder regulation, allowing extremists to obtain suitable amounts without attracting attention.”

Following the Oklahoma City bombing in April 1995, the U.S. government created a program to monitor the potential use of ammonium nitrate-based fertilizers in explosive devices. Since then, these law enforcement “tripwire” programs have been extended to other chemicals that could potentially be used in in the construction of explosive devices, such as hydrogen peroxide. An FBI bulletin from March says that “at least 18 incidents related to attempts to directly purchase ammonium nitrate” have been detected since 2008 because of the ammonium nitrate tripwire program, though none were found to found to be connected with terrorism. The same bulletin warns that monitoring of ammonium nitrate purchases has caused criminals and extremists to adapt, seeking “alternative commercial products containing ammonium nitrate.” Other commercially available products providing a potential source of ammonium nitrate include first-aid cold packs and exploding targets. The bulletin warns that the “FBI assesses with medium confidence criminals and extremists may actively be attempting to acquire [exploding targets] to obtain the ammonium nitrate for use in the manufacture of improvised explosives based on FBI investigations of individuals interested in manufacturing explosives.”

Other materials of concern to law enforcement include chemicals used in swimming pools and water filtration systems, beauty supply products such as hydrogen peroxide and acetone, and industrial cleaning supplies like sulfuric acid. In October 2011, the FBI and the Department of Homeland Security sent out a bulletin to police stating that “public and state and local official awareness, as well as tightened legal controls, have made it more difficult to purchase certain products that contain explosive precursors in bulk quantities or concentrated forms.” This regulation has made terrorists “more likely to use surreptitious, though legal, methods—such as multiple purchases in smaller quantities—to acquire sufficient amounts to create explosives.”

Public Intelligence – DoD Issues Instructions on Military Support of Civilian Law Enforcement

Soldiers from the 3rd Battalion, 321st Field Artillery Regiment, XVIII Fires Brigade train last December to “respond to an escalating civil-disturbance situation caused by unhappy simulated hurricane victims.” According to an article produced by the 82nd Combat Aviation Brigade, the training was designed to prepare the soldiers “for their upcoming assignment as a quick reaction and rapid response force for U.S. Army North Command in support of emergencies in the United States.”

Public Intelligence

The Department of Defense has issued an instruction clarifying the rules for the involvement of military forces in civilian law enforcement. The instruction establishes “DoD policy, assigns responsibilities, and provides procedures for DoD support to Federal, State, tribal, and local civilian law enforcement agencies, including responses to civil disturbances within the United States.”

The new instruction titled “Defense Support of Civilian Law Enforcement Agencies” was released at the end of February, replacing several older directives on military assistance to civilian law enforcement and civil disturbances. The instruction requires that senior DoD officials develop “procedures and issue appropriate direction as necessary for defense support of civilian law enforcement agencies in coordination with the General Counsel of the Department of Defense, and in consultation with the Attorney General of the United States”, including “tasking the DoD Components to plan for and to commit DoD resources in response to requests from civil authorities for [civil disturbance operations].” Military officials are to coordinate with “civilian law enforcement agencies on policies to further DoD cooperation with civilian law enforcement agencies” and the heads of the combatant commands are instructed to issue procedures for “establishing local contact points in subordinate commands for purposes of coordination with Federal, State, tribal, and local civilian law enforcement officials.”

In addition to defining responsibilities for military coordination with local law enforcement, the instruction describes circumstances in which direct participation in civilian law enforcement is permissible. Under the Posse Comitatus Act of 1878, U.S military personnel are generally prohibited from assisting in civilian law enforcement functions such as search and seizure, interdiction of vehicles, arrest and interrogation, surveillance or using force except for in self-defense. Though the Posse Comitatus Act originally referred only to the Army, it was extended in 1956 to include the Air Force. Subsequent DoD regulations prevent the use of the Marine Corps or Navy for civilian law enforcement functions. In 1981, this principle was further codified in 10 USC § 375 which directs the Secretary of Defense to ensure that military activities do “not include or permit direct participation by a member of the Army, Navy, Air Force, or Marine Corps in a search, seizure, arrest, or other similar activity unless participation in such activity by such member is otherwise authorized by law.”

Though the Posse Comitatus Act is the primary restriction on direct DoD involvement in law enforcement functions, it does not prevent military personnel from participating in circumstances “authorized by the Constitution or Act of Congress.” This includes circumstances involving “insurrection, domestic violence, or conspiracy that hinders the execution of State or Federal law” as well as actions “taken under express statutory authority.” The DoD’s instruction includes a list of more than a dozen “laws that permit direct DoD participation in civilian law enforcement” including many obscure statutes that are more than a hundred years old. For example, a law passed in 1882 and codified under 16 USC § 593 allows for the President to use land and naval forces to “prevent the felling, cutting down, or other destruction of the timber of the United States in Florida.” Likewise, the Guano Islands Act of 1856 enables the President to use land and naval forces to protect the rights of a discoverer of an island covered by the Act.

Military commanders also have “emergency authority” to use military forces in civilian law enforcement functions “in extraordinary emergency circumstances where prior authorization by the President is impossible and duly constituted local authorities are unable to control the situation, to engage temporarily in activities that are necessary to quell large-scale, unexpected civil disturbances”. This authority is limited to actions “necessary to prevent significant loss of life or wanton destruction of property and are necessary to restore governmental function and public order” and “provide adequate protection for Federal property or Federal governmental functions.” In fact, an enclosure to the DoD instruction describing requirements for support of civil disturbance operations states that military commanders “shall not take charge of any function of civil government unless absolutely necessary under conditions of extreme emergency.” According to the instruction, any “commander who is directed, or undertakes, to control such functions shall strictly limit DoD actions to emergency needs and shall facilitate the reestablishment of civil responsibility at the earliest time possible.”

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DHS Infrastructure Protection Report Series

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