Afternoon Report for Friday, August 18, 2023
5:30 PM ET, Friday, August 18, 2023
The Cipher Brief curates open source information from around the world that impacts national security. Here's a look at today's headlines, broken down by region of the world:
In the Americas
U.S. Counterintelligence Agencies Warn Space Companies of Foreign Espionage. The FBI, National Counterintelligence and Security Center (NCSC) and the Air Force Office of Special Investigations (AFOSI) released a joint bulletin warning U.S. space companies that foreign intelligence entities are working to steal their research and trade secrets. The bulletin says unspecified entities are using cyberattacks and techniques like strategic investments through joint ventures and acquisitions to access the U.S. space industry. The warning said companies should be on guard for facility visit requests, attempts to gather confidential information at conferences, and the risk of individual employees being recruited to reveal or sell proprietary information. To bolster defenses, the bulletin says the companies should contact the FBI or AFOSI with any concerns, track “peculiar incidents,” and establish “insider threat” programs. U.S. counterintelligence officials have warned for years that the U.S. space industry is vulnerable to foreign actors, especially China and Russia, as competition in the space sector ramps up. Cybernews New York Times Reuters
Heads of U.S., Japan, South Korea Meeting at Camp David. President Joe Biden is meeting with South Korean President Yoon Suk-yeol and Japanese Prime Minister Fumio Kishida for a trilateral summit at Camp David, Maryland. Officials say the leaders will agree to annual military exercises, ballistic missile drills, and wider intelligence sharing, as well as make progress towards establishing a three-way crisis hotline. The group also reportedly plans to formalize the trilateral summit as an annual event. Sources say the summit will not produce a collective defense agreement but will include a commitment to consult each other in a crisis and show that a threat to one country will be seen as a threat to all. The leaders are also set to discuss new economic and energy security initiatives, including efforts to bolster supply chains. The meeting continues the Biden administration’s focus on alliance-building and builds on warming relations between Seoul and Tokyo spurred by shared concerns over China and North Korea. CNN Reuters South China Morning Post
U.S. Tightens Export Controls of Nuclear Materials, Components for China. The U.S. is tightening export controls on nuclear equipment and materials bound for China as part of efforts to ensure the U.S. only supports China’s peaceful nuclear activities and not proliferation of nuclear weapons. The Bureau of Industry and Security ((BIS), a branch of the U.S. Commerce Department, is now requiring exporters to get licenses to export certain generators, containers and software intended for use in nuclear plants in China. The Nuclear Regulatory Commission (NRC) is also requiring exporters to get licenses to export certain nuclear material to China. The NRC said no specific actions by an exporter or China promoted the moves. Few exporters have used a general license to export nuclear materials and equipment to China, so analysts say the controls are likely more symbolic and doubt if they will substantively impact China’s nuclear weapons program. A spokesperson for the Chinese embassy in Washington responded to the controls by saying Beijing is committed to non-proliferation efforts. The U.S. military has previously warned China’s nuclear arsenal will increase from its current stockpile of 400 warheads to 1,500 by 2035 if production continues at the current pace. Reuters
Canada Imposes Russia Sanctions Over Human Rights Violations. Canada’s foreign ministry announced new sanctions against 15 Russian individuals and three entities linked to human rights abuses and oppression of political opponents in Russia. Sanctioned individuals include senior Russian government officials, as well as members of the judiciary and investigative committee and federally funded courts. Reuters
Brazil Arrests Brasilia Military Police Leaders Over Alleged Role in January 8 Riots.
Brazilian federal authorities on Friday arrested leaders of the capital’s military police in a raid carried out in relation to the January 8th riots, in which supporters of former President Jair Bolsonaro stormed government buildings. The Brazilian Supreme Court said that the officials who were arrested had knowledge that the riots were being planned and failed to stop them. Military Police Commander Klepter Rosa was arrested along with former commander Colonel Fabio Augusto Vieira and five other officials. The officials were accused of several crimes such as attempted coup d’etat, damage to public property, and violation of their duties as police authorities. The federal district’s military police and its public security secretariat did not immediately comment on the arrests. Reuters
Western Europe
U.S. Approves Denmark F-16 Training Plans for Ukrainian Pilots. The U.S. has reportedly approved the transfer of instructional materials for Denmark to start training Ukrainian pilots on F-16 fighter jets. An official said the approval includes the transfer of training modules, documentation, and classroom training materials which contain information about sensitive U.S. technology. The Danish defense ministry said earlier on Friday that they will start training Ukrainian pilots later this month. The U.S. has committed to transferring the jets once training is done. Despite the progress, both Western and Ukrainian officials say the F-16s are unlikely to get to Ukraine by the end of the year. General James Hecker, the commander of U.S. Air Forces in Europe and Africa, told reporters that Ukrainian pilots are still getting English-language instruction in Britain, need to train more in propeller aircraft, and will then train on France’s Alpha jet. CNN
Northern Irish Police Arrest Another Suspect Over Data Breach. Northern Irish Police arrested a 50-year-old man on Friday as part of an investigation linked to the accidental breach of sensitive data which likely gave militant groups the personal details of Northern Ireland Police. The leak is extremely sensitive in Northern Ireland as officers are occasionally targeted by militant groups in bomb and gun attacks. Surnames, initials, work location and departments of all Northern Irish police officers and staff were available to the public online for more than two hours last week due to the leak. A 39-year-old man was previously arrested as part of the investigation on Wednesday. Reuters
Central and Eastern Europe
Chinese Defense Minister Meets Belarusian President Lukashenko. Chinese defense minister Li Shangfu met with Belarusian President Alexander Lukashenko in Minsk on Friday. The two discussed ways to boost bilateral military cooperation, according to the Belarusian presidential office. Lukashenko said China and Belarus are supporters of “a multipolar world, territorial integrity and unity of borders and territories” and noted that the world is “absolutely unstable today, through no fault of ours.” Belarus has backed Russia during its invasion of Ukraine, and Moscow is strengthening security ties with Beijing. South China Morning Post
Turkish Cypriot Forces Assault UN Peacekeepers. UN peacekeepers in Cyprus clashed with Turkish Cypriot security forces on Friday. The incident occurred when Turkish Cypriot authorities moved construction equipment into a UN buffer zone where the Turkish Cypriot side wants to build a road. The zone, known as Sector 4, is in the Pyla area and is overseen by a Slovakian military contingent reinforced with British peacekeepers. The UN has expressed concerns about a Turkish Cypriot road in the area since it will disrupt the status quo of the buffer zone. Cyprus has been split since a Turkish invasion in 1974 which followed a Greek-inspired coup. Associated Press Reuters South China Morning Post
Germany Investigating Suspected Poisoning of Russian Journalist. German authorities are investigating a suspected poisoning attempt against Russian dissident journalist Elena Kostyuchenko, who revealed that she abruptly fell ill while traveling to Berlin by train last fall. Kostyuchenko wrote in the Russian-language publication Meduza this week that she was living in exile in Berlin after being warned of a Russian plot to assassinate her. On her way back to the German capital from Munich she found herself drenched in strange-smelling sweat and started to experience cognitive difficulties. Due to lack of evidence, the initial investigation into the suspected poisoning was closed in May, but has been reopened after further consideration. German public prosecutor spokesperson Sebastian Büchner said “I can confirm that the Berlin prosecutor is investigating against an unknown perpetrator. The case is being treated as attempted murder.” He added that the case was reopened “due to new considerations rather than new evidence.” Kostyuchenko had been covering Russia’s invasion of Ukraine since the start of the war for the independent Russian newspaper Novaya Gazeta and had worked with the newspaper for 17 years. CNN
Asia and Oceania
U.S. Nuclear Head Warns of China’s Nuclear Development. General Anthony Cotton, the head of U.S. Strategic Command, which oversees the U.S. nuclear weapons program, has warned that China is not slowing down its nuclear development. Speaking at the 2023 U.S. Strategic Command Deterrence Symposium on Wednesday, Cotton reiterated that China is greatly expanding its nuclear arsenal, noting that China now exceeds the U.S. in the number of land-based fixed and mobile ICBM launchers it has. He also said China now has a “bona fide triad” with sophisticated air, submarine, and silo-based capabilities. His comments build on U.S. concerns over the pace of China’s nuclear development and the prospect of the U.S. being at a disadvantage to a combined Russian and Chinese nuclear threat. However, Cotton said the U.S. is starting its nuclear modernization drive, and that while he wished it were at its end, he is comfortable with its pace and still believes the American triad remains a “credible deterrent.” Nikkei Asia
Japan, U.S. Australia to Hold Joint Naval Drills in South China Sea. Japan, the U.S., and Australia are planning to hold joint naval drills in the South China Sea on Wednesday. Sources say Japan will send its largest destroyer, the Izumo, which is set to become a de facto aircraft carrier after renovations. Sources add that Australia will send its amphibious assault ship Canberra, and the U.S. Navy will send its amphibious assault ship America. The ships will partake in aircraft takeoff and landing practices and are reportedly set to visit the Philippines. The Philippine military reportedly “canceled” their participation in the exercise since the other nations’ aircraft are too large for Philippine warships. Instead, commanders from the four countries are set to meet in Manila to send a “strong message.” The drills come amid mounting tensions with China in the disputed waterway. Kyodo News Reuters
North Korea Scrambles Warplanes to Meet U.S. Spy Plane. North Korea’s military said it scrambled warplanes after a U.S. reconnaissance aircraft intruded into the North’s economic zone off its east coast on Thursday. A spokesperson for North Korea’s army said Pyongyang views the incident as “a dangerous military provocation” and is considering measures to deter further intrusions. The incident came ahead of the trilateral summit between the leaders of the U.S., Japan, and South Korea on Friday, as well as ahead of joint military drills between Washington and Seoul that will start on Monday. Reuters
China Criticizes UN Security Council Talks on North Korea. China criticized the UN Security Council for discussing human rights abuses in North Korea, saying it will only provoke tensions with Pyongyang. Geng Shuang, China’s deputy permanent representative to the UN, told the Security Council that such discussions are “irresponsible, unconstructive and an abuse of power.” Geng added that the Security Council should focus on issues regarding “international peace and security” and focus efforts regarding North Korea on building mutual trust and promoting dialogue. The meeting was the Security Council’s first public discussion on North Korean human rights since 2017. South China Morning Post The Cipher Brief
Russia Suspected of Backing North Korea’s Rapid Missile Development. North Korea’s new Hwasong-18 intercontinental ballistic missile, the first to use solid rocket fuel, has raised suspicions over a possible Russian role in North Korea's missile development. The Center for Strategic and International Studies published a report on Thursday that argues the Hwasong-18 is likely the result of technical cooperation between Russia and North Korea. The missile was first flown in April and has been tested twice. It is the first intercontinental ballistic missile in North Korea’s arsenal to utilize solid propellants, which allows for the faster and easier deployment of missiles during war. Theodore Postol, professor emeritus at the Massachusetts Institute of Technology and author of the report, wrote “the sudden appearance of these advanced capabilities is difficult to explain without cooperation from the Russian government and its scientists,” and that the visual similarities suggest that the Russian government may have decided to transfer an “advanced 50-ton solid propellant ICBM, the Topol-M, also known as the SS-27” to North Korea. However, other experts such as researchers at California’s James Martin Center for Nonproliferation Studies (CNS) have questioned Postol’s report. In a draft report, the researchers highlighted factual inaccuracies, including mistaking the Russian Topol-M and Yars ICBMs, and misidentifying a spent Hwasong-18 rocket stage as a “decoy canister” designed to counter anti-missile systems. Reuters
Middle East and Northern Africa
Iranian Foreign Minister Meets Saudi Crown Prince. Iranian Foreign Minister Hossein Amirabdollahian met with Saudi Crown Prince Mohammed bin Salman in Jeddah on Friday during his first visit to the kingdom since the rapprochement between Iran and Saudi Arabia. Iranian state media called the meeting “a great sign of ties” between the Middle Eastern countries and said the crown prince accepted Amirabdollahian’s invitation to visit Iran. Saudi media only said the two shared views about “future opportunities for cooperation.” Tehran and Riyadh restored diplomatic relations in a China-brokered deal in March. Al Jazeera
Sub Saharan Africa
ECOWAS Agrees to ‘D-Day’ for Niger Intervention. ECOWAS agreed on Friday to activate a standby force for a potential military intervention to restore democracy in Niger if diplomatic efforts fail. Officials said a “D-day” has been decided and that the bloc has determined what is needed for such military action. ECOWAS has maintained that it will focus on finding a diplomatic solution to the Niger crisis but has not ruled out the use of force. Al Jazeera
Cyber and Tech
Interpol Arrests 14 Suspected Cybercriminals Accused of Stealing $40 Million. Interpol arrested 14 suspected cybercriminals in an operation codenamed ‘Africa Cyber Surge II’. The operation began in April and spanned 25 African countries. It disrupted 20,000 cybercrime networks engaged in extortion, phishing and online scams linked to over $40 million in financial losses. Authorities also took down hundreds of malicious IPs and malware hosters in the operation. BleepingComputer
Tennessee School Hit by Ransomware Attack, Education Sector Braces as New Academic Year Starts. As schools prepare to reopen, ransomware gangs have accelerated their attacks against educational institutions. Local reporters in Cleveland Tennessee said that Cleveland City Schools are in the process of addressing a ransomware attack that began Tuesday. District spokesperson Caroline Corrigan said in a letter: “our district, like many others nationwide, is dealing with a ransomware incident. It’s important to note that this incident only affected some of the devices within our network”. School officials additionally said that no student or faculty data had been accessed and that the Cleveland Police Department and Department of Homeland Security were now involved in the investigation. This attack follows a wave of attacks across the nation including one on Prince George’s County Public Schools, one of the largest school districts in the United States. The Record
Siemens Healthineers Investigating Alleged LockBit Data Theft. Healthcare technology giant Siemens Healthineers says it is investigating a potential ransomware incident at its Varian subsidiary after the LockBit ransomware group claimed it breached the company. A Siemens Helathineers spokesperson did not confirm if data had been stolen and said the company has activated “incident response protocol.” The apparent LockBit attack is one of a number of recent cyber incidents targeting healthcare organizations. It also comes as cybersecurity experts question LockBit’s operational strength following reports that it is facing issues with backend infrastructure and available bandwidth to publish data stolen in attacks. The Record
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