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Friday, March 17, 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

US Investigating Alleged Surveillance of Journalists Through TikTok.  The US Department of Justice and the  FBI are investigating claims that Chinese technology giant ByteDance used TikTok to spy on journalists.  Previous media reports in December say that ByteDance may have tracked multiple journalists who wrote about the company by using the app to access their IP addresses and user data.  ByteDance allegedly used this information to see if journalists had been near ByteDance employees.  The company has said it condemns these surveillance actions and that those who conducted them are no longer with ByteDance, adding that its internal investigation into the spying is ongoing and that it will cooperate with other official investigations.  US authorities have since subpoenaed ByteDance and the FBI is conducting interviews related to the matter.  Forbes

China Says US Spreading Disinformation, Suppressing TikTok.  China’s foreign ministry accused the US of spreading disinformation about the safety of TikTok and suppressing its parent company ByteDance.  The comments from Beijing follows the US demand for TikTok’s Chinese owners to divest their stakes in the app and comes amid reports that the app has been used for surveillance activities and to access US user data.  TikTok maintains that it is working to protect US user data and facilitate third-party oversight and that a divestment would not address US security concerns over the app.  Associated Press

El Salvador Extends State-of-Emergency for Gang Crackdown.  El Salvador’s Congress extended emergency powers that suspend some constitutional rights as part of a year-long crackdown on gangs.  The move permits arrests without warrants, government access to private communications and arrests without the right to a lawyer.  The emergency powers have been extended every month since last March after a spate of gang violence.  While the state-of-emergency has the arrest of 65,000 alleged gang members and a dramatic drop in extortion and murder cases, rights groups have raised concerns about reported arbitrary arrest, torture and death of prisoners.  Associated Press Reuters

UN Says Global Cocaine Trafficking Surges.  The UN Office on Drugs and Crime reports that global cocaine trafficking has reached record highs after recovering from a slowdown caused by Covid-19.  The report says the boost in supply is due in part to the increase in coca cultivation, which rose 35 percent between 2020 to 2021.  The increase in supply matches a spike in demand, with the emergence of new cocaine trafficking hubs at North Sea ports and countries in Southeastern Europe and West and Central Africa.  The report adds that while the cocaine market is concentrated in the Americas and Europe, there is potential for major expansion into Africa and Asia.  UN News Wall Street Journal

Western Europe

UK Bans TikTok From Government Devices.  The UK is banning TikTok from all ministers’ and civil servants’ government devices over security concerns.  Cabinet Office minister Oliver Dowden said the ban will go into effect immediately and called it a “precautionary” measure, adding that TikTok has not yet been banned on personal devices.  The ban follows decisions by the US, Canada and the EU to impose similar restrictions on the app.  The company says it is disappointed with the move, and that it is based on “fundamental misconceptions” and “wider geopolitics.”  TikTok also said it will continue to work on plans to protect European user data through efforts like storing data locally and employing third-party oversight.  BBC CNN Reuters The Guardian The New York Times

Nord Stream Blast Investigations Focus On Yacht Andromeda.  Investigations into the Nord Stream pipeline explosions are now centering on the yacht Andromeda.  New intelligence shows the boat left from the northern German city of Rostock with six passengers for an apparent pleasure cruise in early September.  The boat was returned within two weeks, after which its passengers essentially disappeared.  The pipeline blasts occurred shortly after.  German officials say that traces of explosives were found in the vessel and suggest that a six-man group could have planted bombs to the pipelines.  Investigations into the boat and who rented it ahead of the blasts are ongoing.  The focus on the Andromeda comes as investigators have moved closer to accepting that a non-state actor committed the sabotage attacks, which has complicated efforts to determine who ordered the operation.  Wall Street Journal

Central and Eastern Europe

Explosion Rocks Russian FSB Building in Border City of Rostov-on-Don.  A building of Russia’s Federal Security Service (FSB) in the southern city of Rostov-on-Don exploded and burst into flames on Thursday.  Footage from media reports and social media posts show the building engulfed in a raging fire, which killed at least one person and injured another two.  The governor of Rostov region said the fire was caused by an electrical short-circuit, while FSB said the explosion was caused when fuel at a maintenance shop at the building caught fire.  The blast came after a series of cross-border attacks by groups from Ukraine into Russia.  Mykhailo Podolyak, an advisor to Ukrainian President Volodymyr Zelenskiy, denied that Ukraine is responsible for the explosion, though he said it suggested escalating turmoil in Russia, saying “Ukraine doesn’t interfere, but watches with pleasure.”  BBC Reuters Washington Post 

Slovakia to Send Fighter Jets to Ukraine.  Slovak Prime Minister Eduard Heger announced that Slovakia is sending 13 MiG-29 fighter jets to Ukraine.  The pledge came a day after Poland promised to send four of its own MiG29s to Ukraine.  The jet transfers mark a new level of Western military aid for Ukraine. Poland and Slovakia are calling on other countries to follow them in fulfilling Kyiv’s requests for military aircraft.  Following the Polish announcement, US National Security Council spokesman John Kirby told reporters that the US has not changed its position to not send F-16 jets to Ukraine.  CNN Washington Post

Ukraine Foreign Minister Speaks With US, China Counterparts.  Ukrainian Foreign Minister Dmytro Kuleba held separate phone calls with both US Secretary of State Antony Blinken and Chinese Foreign Minister Qin Gang.  The call between Kuleba and Qin marked a rare contact between top officials from China and Ukraine.  China’s foreign ministry said Qin told Kuleba that Beijing is concerned of an escalation in the Ukraine war and that it will continue to push for dialogue and peaceful resolution.  The ministry said that Kuleba expressed hope for continued communication with China and thanked Beijing for its humanitarian assistance.  Kuleba added that he raised Ukraine’s peace proposal and discussed “the significance of the principle of territorial integrity” with Qin.  The US State Department said Blinken discussed the current status of fighting in Ukraine and reiterated Washington’s support for Kyiv, and Kuleba raised ways to expedite US ammunition shipments with Blinken.  Associated Press South China Morning Post The Cipher Brief

Secret Document Allegedly Lays Out 10-Year Russian Strategy to Destabilize Moldova.  A consortium of media outlets obtained and disclosed a document which reportedly outlines plans by Russia’s Federal Security Service to destabilize Moldova.  The plan sets out a 10-year strategy to bring Moldova under Russia’s influence through the use of pro-Russian groups, the Orthodox Church and the weaponization of energy through the severing of natural gas supplies.  The document also adds clear goals of preventing Moldova from joining NATO and the EU and cutting Moldova off from neighboring Romania, a NATO member.  Kremlin spokesman Dmitry Peskov said Russia had no knowledge of the plan, suggesting it may be “another fake” and that Moscow seeks good relations with Moldova.  The report on the plan comes after weeks of pro-Russian anti-government protests in Moldova and a series of incidents revealing Russian influence and sabotage operations in the country.  CNN Kyiv Independent

Chinese Companies Sent Assault Rifles, Body Armor to Russia.  Politico reports that Chinese companies have sent assault rifles and other military equipment to Russian entities.  Citing information from trade and customs data aggregator Import Genius, the report says that China North Industries Group Corporation Limited, a major state-owned Chinese defense contractor, sent 1,000 ‘hunting rifles’ to the Russian company Tekhkrim.  The report goes on to say other Chinese companies sent 12 shipments of drone parts and 12 tons of Chinese body armor through Turkey to other Russian organizations.  The report is the first confirmation that China is sending rifles and body armor to Russia.  Experts note that the transfers do not automatically mean China is significantly arming Russia to support its invasion of Ukraine as it is difficult to determine if the Chinese weapons and dual-use items are being deployed there.  The reports on the transfers come as Beijing maintains it is committed to supporting peace efforts in Ukraine.  Politico The Cipher Brief

Asia

China’s Xi to Visit Russia.  China’s Foreign Ministry and the Kremlin announced that Chinese President Xi Jinping will meet Russian President Vladimir Putin in Moscow next week.  Experts say Xi’s visit to Russia, which will last from Monday to Wednesday, is part of Beijing’s efforts to position itself as a key power in international affairs.  The trip will be Xi’s first visit to Russia since the invasion of Ukraine, and the US and Europe are expected to closely watch the visit to assess Beijing’s diplomatic, economic and military support of Moscow in the Ukraine war.  Media reports say Xi will speak with Ukrainian President Volodymyr Zelenskiy after his trip to Russia, which a Ukrainian presidential spokesperson said has not been finalized and is still under discussion.  New York Times Washington Post

New Zealand Banning TikTok From Parliament-Linked Devices.  New Zealand is banning TikTok from phones of MPs and other devices on the country’s parliamentary network by the end of the month.  The New Zealand government said it imposed the ban over security concerns after consultation with cybersecurity experts and other countries.  The ban, which follows similar restrictions on the app from the UK, US, Canada and the EU, came after a report by Australian researchers that said TikTok’s parent company ByteDance is “beyond doubt” under the influence of the Chinese government, which TikTok has dismissed as “wild speculation.”  ABC News Reuters The Guardian

North Korea Says It Launched Largest ICBM in Latest Missile Test.  North Korea said it launched its largest Hwasong-17 intercontinental ballistic missile (ICBM) on Thursday to demonstrate Pyongyang’s “tough response posture.”  The launch of the missile, which is North Korea’s biggest and the largest mobile, liquid-fueled ICBM in the world, came in response to ongoing joint military drills between the US and South Korea.  The launch also came shortly before South Korean President Yoon Suk-yeol flew to Tokyo for a South Korea-Japan summit that highlighted North Korean threats.  Reuters

India to Purchase $8.5 Billion of Weapons, Military Equipment.  India’s Defense Acquisition Council approved the purchases of 8.5 billion worth of missiles, helicopters, artillery guns, electronic warfare systems and other weapons for all of its services on Thursday.  The Indian defense ministry said the orders will be placed with Indian companies.  The purchases have a major focus on the navy and will include 200 BrahMos supersonic missiles, which was jointly developed by India and Russia.  The massive defense acquisition effort comes amid a military modernization drive in India and continuing tensions with neighboring Pakistan and China.  Reuters

UN Seeks International Consensus on Dealing with Taliban.  In an unusual move the UN Security Council has adopted a resolution calling for an outside, independent assessment to help provide solutions for dealing with Afghanistan. The resolution was co-sponsored by Japan and the UAE, with the UAE’s UN Ambassador saying that it is time for fresh thinking on Afghanistan.  The goal of the resolution is to solicit ideas from the international community that the UN hopes will provide the foundation of a ‘shared’ international vision on how to properly deal with the ruling Taliban regime.  Deutsche Welle  

Middle East and Northern Africa

US CENTCOM Commander Says Aggressive Russian Flights Increasing in Syria.  General Erik Kurilla, the commander of US Central Command, told a Senate Armed Services Committee hearing that there has been a “significant spike” in aggressive Russian military flights in Syria in the last month.  Kurilla said the flights include “provocative” maneuvers by Russian ground-attack aircraft over U.S. bases in Syria, which he called unprofessional and unsafe.  He added that such Russian actions are pushing the deconfliction protocols in Syria that are meant to keep US and Russian forces there from confronting each other.  Kurilla’s report comes amid US criticism of Moscow over the Black Sea drone incident.  CNN

Iran to Stop Arming Houthis Under Rapprochement Deal With Saudi Arabia.  US and Saudi officials say that Iran has agreed to stop covertly arming the Houthis in Yemen as part of Iran’s deal to restore diplomatic relations with Saudi Arabia.  Saudi officials add that Iran also promised to push the Houthis to stop attacking targets in Saudi Arabia.  Iran’s delegation to the UN did not comment on the alleged promises, and observers say it is uncertain if the Iranian military supports it.  US and Saudi officials expressed hope that if the Houthis are cut from Iranian military support, it will pressure them to engage with the Yemeni government to potentially move towards a ceasefire and eventual end to Yemen’s long-running civil war.  Both Washington and Riyadh said they will watch for Tehran to follow through on these pledges to determine if next steps of the Saudi-Iran deal, such as the reopening of embassies, will move forward.  The news on the Houthis is the latest sign that the China-brokered deal to ease tensions between Tehran and Riydah will greatly alter dynamics in the Persian Gulf.  Wall Street Journal

Eastern Libyan Forces Say They Recovered Missing Uranium.  The Libyan National Army (LNA), Libya’s main eastern military force, says it has found drums of uranium that the IAEA said had gone missing from a site in southern Libya.  The head of LNA’s media unit said the force recovered 10 missing barrels, though a video of the recovery appeared to show 18 drums were found.  The LNA added that a group from Chad may have stolen the uranium barrels and later abandoned them when they realized they did not contain weapons or ammunition.  The IAEA says it is working to verify the recovered barrels.  France 24

Sub Saharan Africa

Blinken Visits Niger, Calls for Western Support of Sahel.  US Secretary of State Antony Blinken made an historic visit to Niger on Thursday, marking the first trip by a US Secretary of State to the Sahel nation.  During his visit, Blinken announced an additional $150 million in humanitarian aid for the Sahel region and called on the US and its Western allies to show they “can deliver results” in the Sahel, which is grappling with Islamist insurgencies and increasingly coming under the influence of Russia’s Wagner Group.  Al Jazeera Reuters

Cyber & Tech

Google Says Chinese Cyberattacks Evolving to Target US Government and Private Networks.  Google’s Mandiant released research that shows China-backed hackers have been developing techniques to evade traditional cybersecurity defenses to infiltrate US government and business networks without detection.  The research shows that instead of getting behind firewalls, the new techniques attack software from companies like VMware Inc or Citrix Systems Inc on the edge of targeted networks.  These devices usually lack antivirus or endpoint detection software, making them more vulnerable.  By targeting the systems made to protect networks themselves, Mandiant says hackers could find novel vulnerabilities to launch less detectable cyberattacks, marking a more complex level of China-sponsored hacking.  Wall Street Journal

CISA Says Nation-State, Criminal Groups Hack Federal Agency.  CISA, the FBI and the Multi-State Information Sharing and Analysis Center issued an alert saying that the China-linked hacking group Hafnium and the cyber criminal gang XE Group breached a US federal civilian agency between August 2022 to January 2023.  The alert, which was informed by Google’s Threat Analysis Group, said XE Group exploited vulnerabilities in the Progress Telerik software in the agency’s Microsoft Internet Information Services (IIS) web server.  The alert added that XE Group has been targeting the agency since mid-2021 with malicious DLL files.  CyberScoop

Microsoft Fixes Zero-Day Gap Used by Hackers Linked to Russia’s GRU.  Microsoft has patched a zero-day vulnerability in Outlook that was exploited by the Fancy Bear hacking group, which is linked to Russia’s GRU military intelligence service, to breach European organizations.  Microsoft says Fancy Bear had used the zero-day, which was reported by Ukraine’s Computer Emergency Response Team (CERT-UA), to steal credentials from less than 15 government, military, energy and transportation entities from April to December 2022.  Microsoft is urging customers to immediately patch systems against the zero-day to mitigate attacks using it.  BleepingComputer

Wall Street Regulator Proposes Cybersecurity, Resiliency Rules for Market Entities.  The Securities and Exchange Commission voted to propose new rules to bolster the US financial system’s defenses against hacking and data theft and strengthen wider market resiliency.  The proposed measures would require securities exchanges, broker-dealers and money managers enact cybersecurity risk policies, maintain programs that detect and notify consumers of unauthorized data access, and, most notably, require them to “immediately” notify the SEC of “significant cyber incidents.  The proposal comes amid increasing concerns over threats that could lead to the financial system’s failure following the collapse of Silicon Valley Bank and turmoil at Credit Suisse.  Reuters

China’s 2023 Semiconductor Output Contracts by 17 Percent Amid US Sanctions.  China’s National Bureau of Statistics (NBS) reports that China’s output of integrated circuits (IC) fell by 17 percent in the first two months of 2023.  The report said China’s IC production at the start of this year reached 44.3 billion units, marking a stark contrast to the 57.3 billion units produced last year in the same time period.  Other NBS data showed China’s shipment of microcomputers fell by 21.9 percent and smartphone output dropped by 14.1 percent in the same period.  The figures point to a downturn in China’s semiconductor industry and wider tech production amid US-led sanctions and decoupling efforts.  South China Morning Post

China’s Baidu’s Answer to ChatGPT Disappoints.  Chinese technology giant Baidu on Thursday revealed its AI-powered chatbot Ernie Bot, which was expected to rival US research lab OpenAI’s ChatGPT.  Despite the hype, the reveal was disappointing as it used pre-recorded videos instead of a live demonstration and was not accompanied with a public launch.  Baidu shares fell by 10 percent following the presentation and closed down 6.4 percent at the end of the day.  Ernie Bot’s lackluster debut contrasted with OpenAI’s launch a day before of its advanced GPT-4 language model.  Reuters South China Morning Post

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