[iwar] news

From: Fred Cohen (fc@all.net)
Date: 2001-08-04 07:07:51


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Wednesday August 1 3:29 PM ET

Code Red Internet Worm Disturbs Pentagon Networks

By Deborah Zabarenko

WASHINGTON (Reuters) - The reawakened ``Code Red'' worm disturbed the
Pentagon's computer networks on Wednesday, and the main U.S. computer
monitoring center predicted it would infect as many systems as it did in its
first incarnation in July.

``The worm is an ugly thing,'' U.S. Army Major Barry Venable said in a
telephone interview from Colorado Springs, where the U.S. military monitors
its networks.

``Here at DoD (Department of Defense), we've observed several disturbances
to our networks as a result of this thing working on the Internet, but we've
seen no significant degradation to DoD yet,'' Venable said.

Code Red surreptitiously infects computers running Windows NT or 2000
operating systems and Microsoft Corp.'s IIS Web server software and then
makes infected machines scan the Internet for more victims.

It reawakened at 8 p.m. EDT on Tuesday after an 11-day dormant period. First
recognized by Internet security watchdogs in mid-July, the time-linked worm
reached its peak virulence on July 19 before shutting down on July 20. It is
designed to resume multiplying on the first of the month.

The Defense Department, which operates hundreds of Web sites, had to
temporarily shut down public access to them during the July onslaught of
Code Red.

Venable would not elaborate on whether Wednesday's ''disturbances'' included
slow operation or whether any systems were shut down, but said of Code Red,
``We will continue to evaluate the threat that it poses.''

The FBI-led National Infrastructure Protection Center said in an online
update: ``Based on preliminary analysis, we expect a level of worm activity
comparable to the July 19 Code Red infection, which resulted in infection of
over 250,000 systems. It should achieve that level of activity by this
afternoon.''
...
==============================================================================

French hobbyists crack Credit Card that uses chip and RSA encryption 
Security News Portal, 8/2/2001
http://www.securitynewsportal.com/

"The French Credit Card uses a state of the art technology: a chip
embedded with strong encryption measures. The authentification keys are
320 and 728 bits long and are RSA encoded. As soon as the private key
was anonymously published on the Net back in March 2000, French
hobbyists started working on an emulator which resulted in a software
program being developed which enables hackers and others to clone or
emulate a valid credit card. The proof of the authentification flaw was
first demonstrated by Serge Humpich on July 1998. He purchased Paris
subway tickets with his self-made credit card and then was busted one
month later.

Now anyone is able to make their very own Credit Card with this new tool
and because the RSA encryption is not even used during the transaction,
one can purchase anything below 600 Francs (about $90). When the
transaction amount is below 600 Francs the card's validity is not
checked. Random CC number may then be used for real transaction. Since
no link can be found in English, a translated review will be soon posted
at alpha-solution.com"

==============================================================================
* subscribe at http://techPolice.com 
 

"State's New Cyberpolice Off to Good Start" 
Baton Rouge Advocate (07/26/01) P. 6-D; McClain, Randy 

Louisiana law enforcement officials are pleased with its new
computer crimes unit, which has caught several high-tech
offenders, including child pornographers who were targeting
local youth. The unit, which was developed last year, has been
able to conduct investigations in 23 Louisiana parishes of
computer hacking and email virus cases. According to the FBI,
computer crimes are on the rise, with 85 percent of U.S.
companies and government agencies reporting computer breaches
within the past year. Louisiana authorities noted the program
was established in December with the help of a $35,000 grant
from the state's Commission on Law Enforcement. The unit
utilizes such tools as NeoTrace, which is able to locate the
addresses of offending computers within minutes.
(www.theadvocate.com) 

==============================================================================

Press Release dated 1st August 2001
DEMONSTRATION AGAINST ISRAEL

Friday 3rd Aug 2001 from Regents Park Mosque to the US Embassy After
Jumma prayer

Following the latest murders in Palestine perpetrated by the Israeli
regime of Ariel Sharon (the butcher of Sabra and Shatila), Muslims in
Britain will be demonstrating to create awareness about the illegitimate
state of Israel and will be calling for Muslims to support the Jihad
against this fascist State verbally, financially and physically this
Friday. 

Worse than Nazi Germany and Apartheid South Africa in terms of
atrocities having been committed there is no doubt in the minds of any
Muslim that there can never be any peace in Palestine until the State of
Israel is eradicated.  The latest missile attacks against innocent
civilians are typical of these spineless murderers.  However the promise
of their annihilation was foretold 1300 years ago by the Messenger
Muhammad (saw) and it is an inevitability which the Muslims carry as a
decisive belief and which the Israeli occupiers fear every day. 
...

==============================================================================
CODE RED - A RED HERRING

Wayne Madsen

30 July 2001

Washington, DC

Here we go again folks.  The White House, NSA, and National
Infrastructure Protection Center (NIPC) are warning of a dangerous new
Internet worm called "Code Red." We've been here before.  Just last
year, we were all treated to the impending doom caused by a series of
"Distributed Denial of Service Attacks" that resulted in a host of web
sites going down.  Imagine the disruption to the nation's infrastructure
caused by someone's failure to auction off their great grandmother's
curios on e-Bay. 

Conveniently, a few weeks after the dreaded attacks on the dot coms
(many of which are now dot gones - and it wasn't a result of hackers),
President Clinton hosted a cyber-security roundtable at the White House. 
The gloom and doom sayers pointed out why the nation was on the verge of
an "electronic Pearl Harbor." Chief among them was Richard Clarke, the
National Security Council's "Dr.  Strangelove" of cyber-security. 

However, it is not an e-Pearl Harbor we must be concerned about but an
e-Reichstag Fire.  Back in 1933, Hitler's Propaganda Minister Joseph
Goebbels, a pioneer of perception management, hired a bunch of Nazi
hooligans to burn down the Reichstag.  The next day, while the German
Parliament was still smoldering, the Nazis passed the Reichstag Decree,
which effectively relegated the German Constitution and all of its civil
liberty provisions to the toilet. 

But would the United States take advantage of such a situation in
cyber-space to advance a secret agenda? They've probably already done
so.  Back in 1988, the Internet was treated to its first worm. 
Programmed and launched by Robert Morris, Jr., the worm crippled
hundreds of thousands of computers connected to the Internet.  It just
so happened that young Mr.  Morris's dad was the Chief Scientist at NSA
- during a period when the agency was feverishly trying to test the
vulnerabilities of various operating systems and application programs. 

But that was then, and Code Red is now.  We are told that Code Red only
affects web sites relying on Windows NT and Windows 2000.  Of course,
why would any self-respecting 24-hour cable news network want to show a
housewife trying to struggle with a virus-infected home computer
operating Windows 95? Better to capture viewers' attention with hordes
of computer programmers and managers wrestling with downed web sites at
Ford, Xerox, Charles Schwab, and Amazon.com. 

And that's the way the government (and apparently Microsoft) wants it. 
Microsoft, the humbled post-anti trust suit corporate giant, seems to be
cozying up with the Feds and their cyber-security agenda as of late.  At
a recent Interagency Technical Forum at the National Institute of
Standards and Technology (NIST), Microsoft's director of Mobile Code
Security revealed that Microsoft now maintains a full-time resident
office at NSA headquarters with a fully-cleared staff. 

Even the term Code Red is a red herring.  Just like Distributed Denial
of Service attack, it is more out of the Pentagon's lexicon than that of
computer crackers.  Code Red is just too campy - seems like it belongs
in the same league with the movies "Deep Impact" and "Armageddon." But
Code Red is just the kind of term that might impress our otherwise
attention deficit disordered President.  Computer crackers, of course,
like to be a bit more original and artsy, opting for terms like
"Melissa," "Back Orifice," and "Michaelangelo" How many original code
names ever came out of NSA? "Echelon," for example.  Boring! Now Code
Red, that's something that could have been conjured up by the Faulkners
of the Fort!

Why the Code Red hoopla? Well, in a few weeks, President Bush (with Dick
Cheney looming over his shoulder) will be issuing a new Executive Order
on Cyber-Security.  He will appoint an inter-agency Cybersecurity and
Continuity of Operations Board and his current cyber-security guru
Clarke stands a good chance of being selected chairman.  If so, Clarke
will have transcended three administrations in essentially the same
executive branch job - a record surpassed only by FBI Director J.  Edgar
Hoover.  And tomorrow NIPC head Ron Dick gets a jump start on things
with a press conference on cyber security at the National Press Club. 
Hyping Code Red is a sure fire way to ensure the conference is covered
by all the talking head networks.  And it does not hurt that today,
while FBI Director designate Robert Mueller is fielding some questions
on what the FBI will do on cyber security during his Senate conformation
hearings, Code Red is a backdrop. 

Coming on the heels of the G8 Summit in Genoa, Code Red also bolsters
one of the items on the agenda of the leaders.  It was at the G8 Summit
in Lyon in 1996, that the leaders first put cyber crime on their docket,
a decision that was ultimately manifested in the Council of Europe's
soon-to-be-enacted Cyber Crime Treaty.  When enacted, the treaty will
enable police agencies to reach beyond borders to seize Internet
communications record traffic.  The anti-globalization Genoa Social
Forum got a taste of what is to come when Italian police stormed their
headquarters and seized computer disks and Inte rnet traffic records. 
This past April, the FBI, acting on behalf of the Canadian police,
seized similar records from the Independent Media Center in Seattle
after the Summit of the Americas in Quebec.  Not to be outdone by his
peers, British Prime Minister Tony Blair - who resembles Big Brother
more and more every day - hurried back to London to urge Parliament to
pass a bill that would equate computer hacking with terrorism. 

Perception Management actually was part and parcel of the agenda of the
same coterie of Pentagon brass and Beltway Bandits who dreamt up
information warfare in the first place.  They knew to be successful, the
public would have to be force fed large diets of disinformation and
sensationalized news.  Ah, Dr.  Goebbels would be so proud of them. 

So in the meantime, we should all head for hills.  Because just like
Y2K, our government says our American Way of life is threatened by
unknown computer toxins.  Time to erect our Computer Defense Shield. 

Fear is the greatest weapon but the truth is the greater defense!

POSTSCRIPT:

Not getting the media bounce from the 8:00 PM EST Code Red meltdown hour
on July 31 (nothing happened!), the FBI began spinning the story the
very next morning that 22,000 computers had been hit with Code Red. 
Considering that viruses and worms probably strike many more computers
than that on any given day, 22,000 is a relatively low number. 

The cyber-security perception management machinery was also put into
high gear in the August 1 edtion of The Washington Times.  A story by
Ben Barber hyped the threat posed by Palestinian computer users who have
launched a so-called "cyber-Jihad" against Israeli government and
corporate computers.  The article states that the U.S. 
government-funded firms RAND and iDefense are urging the United States
to adopt the same cyber defenses as those used in Israel.  And the
article gives us the potential next phase of the U.S.  government's
perception management campaign: Palestinian sites will start
distributing viruses aimed at the United States -- one Palestinian site
is blamed for distributing the Love Bug and Melissa viruses.  If one
remembers, however, Love Bug originated in the Philippines while Melissa
came from Trenton, New Jersey.  They are a long way off from Nablus and
Ramallah on the West Bank. 

Even in pseudo cyber-war, the truth is the greatest casualty!

==============================================================================
From: Alan for the SANS NewsBites service
Re:   August 1 SANS NewsBites

Kudos to the whole SANS community. You did a fantastic job in finding
the Code Red worm, in getting the word out, in patching your systems
and teaching others how to patch theirs, and in monitoring the
worm's spread.

Hour-by-hour infection data (from SANS Internet Storm
Center - the Internet's early warning system) is posted at
http://www.digitalisland.net/codered/

We didn't post it at our site because several hundred thousand 
visitors an hour was too much for us to handle and because we wanted 
to give the whole Windows community a free class on how to patch the 
current problem and how to change the ISAPI mapping of IIS web 
servers so that the Code Red vulnerability and future similar 
vulnerabilities cannot hurt them.  

==============================================================================

NEW YORK ELECRTONIC CRIMES TASK FORCE STATISTICAL OVERVIEW

NYECTF TOTALS FROM JANUARY 1995 THROUGH JULY 2001

ARRESTS___________________________________832  (199 Federal, 633 State)
PRESENTATIONS/DEMONSTRATIONS_________252
PLANTS SUPPRESSED________________________189
PBX 800 NUMBERS___________________________11,270
CREDIT CARD CALLING CARDS_______________196,257
CELLULAR INTERCEPTORS___________________117
PAGER INTERCEPTORS_______________________8
COMPUTER INTERCEPTORS___________________8 (MDT)
CELLULAR PHONES/CLONED PHONES SEIZED__2,862
IDENTITY TAKEOVERS/SUBSCRIPTION FRAUD_3271
ESID'S_______________________________________874
PAGERS SEIZED______________________________183
MISSING & EXPLOITED CHILDREN ISSUES______2063
HANDGUNS/MACHINE GUNS__________________60
CROSSBOWS_________________________________2
CABLE TELEVISION BOXES___________________225
HEROIN/CRACK COCAINE/POT________________13.31 KILO'S
ESN/MIN'S SEIZED___________________________180,283
CAP CODES_________________________________90,057
FORENSIC EXAMINATIONS___________________535
COMPUTERS SEIZED_________________________605
RE-MARKED CPU'S___________________________2,098
ASSET FOREFEITURE_________________________$7,026,625
(REAL PROPERTY NOT INCLUDED)
COUNTERFEIT SOFTWARE____________________2,022
COUNTERFEIT HARDWARE___________________1070
ACTUAL/POTENTIAL FRAUD LOSS_____________$516,151,304.64
INTELLECTUAL PROPERTY UNITS_____________96,655
ELECTRONIC CRIMES TRAINING______________11,978
ASSISTANCE TO OUTSIDE AGENCIES__________8007


--This communication is confidential to the parties it is intended to serve--
Fred Cohen		Fred Cohen & Associates.........tel/fax:925-454-0171
fc@all.net		The University of New Haven.....http://www.unhca.com/
http://all.net/		Sandia National Laboratories....tel:925-294-2087

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