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Dead Drop: September 20 - 26

WHO’S YOUR DADDY? According to the Justice Department, Lee Reiber, 55, CEO of Virginia-based Oxygen Forensics, was arrested in Idaho on a federal complaint alleging that the company was secretly owned and controlled by five Russian nationals and that its software was being developed in Russia. Co-defendant Oleg Davydov, 52, the company's Moscow-based chief technology officer, was arrested at London's Heathrow Airport before boarding a flight to Istanbul. Reiber is expected to be arraigned in federal court in Los Angeles and U.S. authorities say they will likely seek Davydov’s extradition. Of course, both men are presumed innocent until proven guilty in court. The details of prosecutors laid out are pretty interesting as customers of the company are believed to include the Pentagon, the Secret Service, Homeland Security Investigations and the DHS Office of Inspector General, the agency charged with investigating waste, fraud and abuse at DHS. RFE/RL reports that the same Russian owners also ran a Moscow company whose customers included Russia's FSB, the successor to the KGB's domestic-security service. Prosecutors say the Russians disappeared from Oxygen's corporate filings after Russia's 2022 invasion of Ukraine but continued to control key aspects of the business, including Reiber's compensation and company bank accounts. When a reporter began asking questions in 2023, prosecutors say Reiber warned the owners that press coverage "could destroy this entire opportunity." The Secret Service's National Computer Forensics Institute later awarded Oxygen a five-year contract potentially worth up to $12 million. Reiber and Davydov are charged with conspiracy to commit wire fraud. DOJ does not allege that Oxygen's software contained malicious code or that it was used to break into government systems.

FBI JOBS PORTAL A LITTLE TOO WIDE OPEN? The FBI’s online recruiting system appears to have attracted some applicants who were less interested in joining the Bureau than in rifling through its personnel files. The cybercrime group ShinyHunters claims it breached FBIjobs.gov and stole data on “almost all” FBI agents and job applicants. The FBI has confirmed unauthorized activity involving the site but has not confirmed the hackers’ broader claims about what was accessed. A sample of about 5,000 purported agent records examined by 404 Media included names, home addresses, phone numbers and reportedly even information about spouses. No word on whether it also included favorite pets. Here’s the rub: ShinyHunters says it has data on virtually the entire FBI workforce, including current and former employees and applicants, and claims the haul could include as much as 2 to 3 terabytes of information. If the broader claims prove true, this is a much bigger problem for the Bureau. ShinyHunters claims the attack was in retaliation for an FBI warning about the group’s cybercrime tactics. This could get ugly.

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