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Thursday, March 16, 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 Demands Chinese Owners Divest Stakes in TikTok.  The Biden administration is demanding Chinese owners of TikTok divest their shares and has threatened a nationwide ban on the app if they do not do so.  The move is the Biden administration’s strongest action against TikTok to date and the first time it has publicly threatened a potential ban amid security concerns surrounding the app.  TikTok says that if security is an issue, divestment will not resolve the problem and that such concerns will be addressed through the establishment of US-based protection of data of American users and third-party review.  China’s Bytedance, which owns TikTok, echoed this by saying 60 percent of the app’s shares are held by global investors, 20 percent by employees and 20 percent by founders.  China’s foreign ministry likewise called for the US to prove TikTok is a national security threat and urged Washington to stop suppressing such companies.  Despite this pushback, the threat still stands, though it is unclear how the US would enforce divestiture of the app’s Chinese owners in practice.  The Trump administration similarly tried to force ByteDance to sell TikTok to buyers like Oracle and Walmart, but the effort failed against ByteDance’s legal challenges.  Bloomberg New York Times Reuters Washington Post Wall Street Journal

US, Russian Military Chiefs Make Rare Contact to Address Black Sea Drone Crash.  US Defense Secretary Lloyd Austin and Chairman of the Joint Chiefs of Staff General Mark Milley held rare phone calls with their Russian counterparts on Wednesday to address the US drone that crashed in the Black Sea after being intercepted by Russian fighter jets – the first known direct confrontation between Washington and Moscow since the start of the Ukraine war.  Russia’s defense ministry said that in Russian Defense Minister Sergei Shoigu’s call with Austin, which was the first contact between the two since October, Shoigu said US drone flights near Crimea are “provocative” and risk escalation in the Black Sea, adding that Moscow will respond accordingly to further provocations.  However, he added that Russia and the U.S. should maintain communication and act responsibly.  Austin did not detail his comments in the call but said that the U.S. will continue drone flights where allowed by international law.  He also called on Russia to ensure its military aircraft operate safely and professionally moving forward.  Specifics about Milley’s call with General Valery Gerasimov, the chief of the General Staff of the Russian military, have not been released.  Milley did tell reporters after the call that the Russian jets intentionally intercepted the drone and made contact with it – which Russia disputes – but that it is still unclear if the collision was intentional.  Associated Press Reuters US Department of Defense

Top US Officials Say Black Sea Drone Recovery Difficult.  Milley also played down concerns that Russia could recover sensitive technology or intelligence from the drone wreckage, saying there is likely not much to recover, noting that the drone crashed in waters that are 4,000 to 5,000 feet deep.  He also said that the U.S. took “mitigating measures” to ensure there is nothing of value at risk.  His comments echoed White House national security spokesman John Kirby’s earlier remarks to CNN that the drone fell into “very deep water” and that the U.S. is still assessing if any recovery is possible at all.  The reassurances from top U.S. officials about how difficult and relatively useless it would be to recover the drone come amid reports from anonymous U.S. officials that Russia has deployed military vessels to the area to attempt to search for the drone.  Associated Press Reuters The Guardian The Hill

US Releases Footage of Black Sea Drone Downing.  The US military’s European Command released declassified footage leading up to the downing of the US drone over the Black Sea.  The footage shows two passes by a Russian SU-27 fighter jet that sprays the MQ-9 Reaper drone, which is filming the incident, with a substance the Pentagon says is jet fuel.  One of the Russian jets then hits the drone in a final pass.  The footage does not show the collision but later shows the drone’s damaged propeller.  The release of the footage is the latest move by the U.S. to declassify information to disprove Russian disinformation.  In this case, the footage invalidates Moscow’s assertion that its jets did not intercept the drone and collide with it.  Al Jazeera BBC CNN New York Times

Senate Confirms Biden Nomination for India Ambassador.  The US Senate finally confirmed Eric Garcetti, the former mayor of Los Angeles, as US Ambassador to India following a two year stalemate on his confirmation. The two year block was due to allegations that Garcetti mishandled workplace harassment allegations during his time as LA Mayor. Garcetti was approved by a vote of 52-42, with seven Republicans voting with the majority of Democrats, while three Democrats joined with the majority of Republicans. Garcetti’s appointment will fill the top US envoy spot in New Delhi, which has been vacant since January 2021.  CNN Reuters Washington Post

Canada Sending Artillery Rounds, Air Defense Missiles to Ukraine.  Canadian Defense Minister Anita Anand announced Wednesday that Canada is giving Ukraine around 8,000 rounds of artillery ammunition, 1,500 rounds of tank training ammunition and a dozen air defense missiles.  Anand said the tank training rounds will be used for Leopard 1 tanks sent by Denmark, Germany and the Netherlands to Ukraine.  The Canadian government separately added that the eight Leopard 2 tanks it is sending to Kyiv will arrive in Ukraine in the coming weeks.  The announcements of the new Canadian military aid for Ukraine came at the 10th Ukraine Defense Contact Group meeting, which was held virtually.  Government of Canada Kyiv Independent Reuters

Mexico Files Appeal in Suit Against US Gunmakers.  Mexico filed an appeal in its civil lawsuit against top U.S. gun manufacturers on Wednesday.  The appeal follows a U.S. judge’s decision in September to dismiss Mexico’s lawsuit against the American gunmakers which accuses them of facilitating the trafficking of their firearms into Mexico.  The issue has received heightened attention following the kidnapping of four Americans by a drug cartel in northern Mexico, in which two of the Americans and a Mexican civilian were killed.  Reuters 

Ecuadorian President Lasso Not Mentioned in Declassified Documents Meant to Back Impeachment.  Ecuador’s companies regulator says that Ecuadorian President Guillermo Lasso and his family are not mentioned in declassified documents that opposition lawmakers said could be used in a potential impeachment bid against him.  Ecuador’s national assembly voted to declassify the documents on Tuesday as part of an investigation into Lasso’s connections to potential corruption and graft at state companies.  Lasso has denied allegations of wrongdoing.  While his allies say the lack of evidence against him in the declassified documents show there is no need to continue investigations, opposition lawmakers are seeking further information, such as the declassification of presidential visitor logs.  Reuters

Western Europe

European Allies Announce New Ukraine Military Aid.  Several European partners announced new military aid for Ukraine at the 10th Ukraine Defense Contact Group meeting.  Spain pledged to send another 4 Leopard 2 tanks to Ukraine in addition to an earlier promise of 6 tanks, which the Spanish government said would reach Kyiv “in the near future.”  Sweden said it is providing 10 Leopard 2 tanks and key air defense components to Kyiv.  Norway said it is working with the US to send two NASAMS systems to Ukraine.  The Netherlands said it is opening new defense contracts to maintain the delivery of new arms to Ukraine.  And Slovenia says it is contributing support to fulfill “several of Ukraine’s priority requirements, including armor.”  US Defense Secretary Lloyd Austin praised all these donations as critical for Ukraine’s fight against Russia and urged allies to continue this aid long-term.  El Espanol Kyiv Independent Ukrinform

Poland Says Planning to Give Ukraine MiG-29 Jets.  Polish President Andrzej Duda announced Thursday that Warsaw will send four MiG-29 fighter jets to Ukraine in “the next few days.”  If Poland sends the jets, it will be the first NATO member to fulfill Ukraine’s request for warplanes.  Duda added that Poland will replace the planes it is sending to Ukraine with South Korean FA-50 jets and U.S. F-35s.  He had previously said jet transfers to Kyiv would be done within a wider coalition, with Slovakia expressing interest, but it is unclear if the countries are following Poland’s donation of airpower.  Associated Press Deutsche Welle RFE/RL Wall Street Journal

Turkey’s Erdogan Signals Ankara Could Soon Ratify Finland’s NATO Membership.  Turkish President Recep Tayyip Erdogan signaled that Ankara could soon ratify Finland’s accession into NATO.  When asked by reporters about potential ratification following Finnish President Sauli Niinisto’s visit to Turkey this week, Erdogan said “God willing, if it is for the best” and that “the process will function” and that Turkey “will keep our promise.”  While Erdogan’s response did not outright confirm Turkey’s support of Finland’s membership, Finnish President Niinisto seemed to confirm it by telling Reuters that Erdogan “has decided to ratify Finland’s NATO membership [and] wants to meet and fulfill his promise president to president.”  Anonymous Turkish officials echoed this positivity.  Niinisto will meet with Erdogan in Istanbul on Friday to discuss the matter.  If Turkey does end up supporting Finland’s membership this week, it is not likely to change its stance against Sweden’s accession into the alliance over ongoing issues with Stockholm’s response towards Kurdish groups and recent protests involving burnings of the Quran.  Al Jazeera Associated Press Euronews Politico

Central and Eastern Europe

CIA Chief Visits Poland After Arrest of Suspected Russian Spies.  CIA Director William Burns met with Polish President Andrzej Duda in Warsaw on Wednesday.  The Polish president’s office said the meeting focused on Poland’s current security situation.  Burns’ trip to Warsaw coincided with media reports that Poland’s Internal Security Agency had arrested six people suspected of being part of a Russian spy network.  Polish authorities reportedly linked the suspects to the discovery of “dozens” of hidden cameras at key transit routes like railway junctions and the Warsaw airport.  Sources say the spy network likely used the cameras to gain intelligence on aid transports to Ukraine and that the spies may have also been planning sabotage attacks.  BBC Kyiv Independent RMF 24

Russian Hackers Launching New Cyber Campaign Against Ukraine, Microsoft Warns. A research report released from Microsoft on Wednesday found that Russian hackers appear to be preparing for a new wave of cyber attacks against Ukraine. The report says the hackers are specifically preparing a “ransomware-style” attack on organizations supporting Ukraine’s supply lines. Russia has not yet commented on the allegations in the report.  Reuters

ISW Says Wagner Group’s Bakhmut Campaign Appears to Be Slowing, Headed for Failure.  The Institute for the Study of War reports that attacks by Russia’s Wagner Group on the eastern Ukrainian city of Bakhmut have significantly decreased in the last few days.  The observation follows reports from Wagner founder Yevgeny Prigozhin that his mercenary group is suffering from ammunition shortages and heavy fighting.  Despite this, he has also claimed Wagner took the small settlement of Zalizianske northwest of Bakhmut.  ISW says reports of Wagner’s losses coupled with its apparent efforts to seize smaller, relatively easier targets around Bakhmut will constrain the group’s campaign to encircle and take the city.  ISW concluded that these factors will ultimately ensure “the Wagner offensive will not be sufficient to seize Bakhmut.”  ISW Kyiv Independent

UN-Backed Investigation Accuses Russia of War Crimes in Ukraine.  A report by the UN Human Rights Council says that Russia is guilty of war crimes and possible crimes against humanity in Ukraine.  The report cites Russian attacks on civilians – ranging from strikes on Ukrainian infrastructure to”systematic and widespread” torture in Russian-occupied territories – as evidence for the allegations.  The investigation also noted a “small number” of rights abuses by Ukrainian forces, including a case that is under criminal investigation by Ukrainian authorities, but asserted that Russia has committed most crimes in the conflict.  The findings do not uncover new abuses but bring the authority of the international community in condemnation of Russia.  Moscow did not comment on the report.  Associated Press

Asia

Japan’s Kishida, South Korea’s Yoon Hold Bi-lateral Summit.  South Korean President Yoon Suk-yeol is meeting with Japanese Prime Minister Fumio Kishida in Tokyo for a major summit.  Yoon’s visit marks the first bilateral dialouge between Japan and South Korea in 12 years.  Both sides agreed to resume regular “shuttle diplomacy” visits, resume a defense dialogue and strategic talks, and also restart the process for trilateral communication between Japan, South Korea and China.  The meeting came after South Korea announced it is forming a fund to pay compensation for Korean victims of forced labor during Japanese occupation in WWII.  Seoul and Tokyo have been working to resolve the historical dispute to repair ties and restore high-level engagement amid shared security concerns coming out of China and North Korea.  Yoon said on Wednesday that the “vicious cycle of mutual hostility” between South Korea and Japan must end for both sides to cooperate on common interests.  Associated Press Japan Times South China Morning Post Washington Post

North Korea Launches Suspected ICBM.   Underscoring shared threats from Pyongyang, North Korea launched an intercontinental ballistic missile shortly before South Korea’s Yoon left for Tokyo on Thursday.  Japan says the ICBM fell into waters off the northern Japanese island of Hokkaido, outside Japan's economic exclusive zone.  Tokyo added that it did not have reports of any damage from the missile and that it protested the launch through North Korea’s embassy in Beijing.  BBC Reuters

Thailand, EU Restart Talks for Bilateral Trade Deal.  Thailand and the European Union plan to restart talks aimed at reaching a bilateral trade agreement.  Sources say talks will start later this year and are planned to conclude in 2025.  They added that the agreement will focus on Thai industries such as renewable energy, electric vehicles and chipmaking.  Negotiations for the trade deal were halted over Thailand’s 2014 military coup and are now resuming as the bloc seeks free trade agreements with a host of other Asian countries.  European Commission Nikkei Asia Politico

Middle East and Northern Africa

IAEA Warns Tons of Uranium Missing from Libya Site.  The IAEA warned member states that its inspectors have found that 10 drums holding around 2.5 tons of natural uranium are missing from a Libyan site that is not under control by the Libyan government.  Libya previously declared the presence of the drums at the site.  The nuclear watchdog said the missing uranium poses potential radiological and nuclear security risks and says it will continue investigations into the drums’ removal from the site.  The IAEA’s inspection of the site was planned for last year but did not occur till Tuesday due to insecurity in the region.  Al Jazeera Reuters

China, Russia, Iran Hold Joint Naval Drills in Gulf of Oman. Chinese, Russian, and Iranian naval forces are set to hold joint naval drills in the Gulf of Oman according to an announcement from China’s Defense Ministry. The exercises, dubbed “Security Bond-2023” are set to run from Wednesday until Sunday. The countries are expected to practice “aerial search operations, sea rescue, and fleet formation exercises.”  The three countries carried out similar training in 2019 and 2022.  US National Security Council spokesperson John Kirby said the drills do not represent a major development as the countries have trained together before, but added that the U.S. will “monitor” the exercises to ensure they do not pose threats to U.S. interests or allies in the region.  Al Jazeera Associated Press South China Morning Post

Israel Army Killed Suspected Bomber From Lebanon.  An explosive device detonated in northern Israel on Monday, injuring an Israeli civilian.  The Israeli army, which reported the incident on Wednesday, said its forces killed an armed individual suspected to have been behind the bombing.  The army added that it is investigating if Lebanese Hezbollah was involved in the attack.  Al Jazeera BBC New York Times

Sub Saharan Africa

Ethiopia, US Pledge to Strengthen Ties.  US Secretary of State Antony Blinken met with Ethiopian Prime Minister Abiy Ahmed in Addis Ababa on Wednesday.  Both sides pledged at the meeting to strengthen ties and repair relations strained by the Tigray war.  Blinken used the visit to announce $331 million in new US aid for Ethiopia and praised “progress” in efforts to maintain peace between Ethiopia and Tigray.  However, Blinken signaled more work may need to be done by calling for “accountability” on atrocities committed in the war.  He also did not offer Ethiopia reentry into an African duty-free trade program that Washington cut Ethiopia off from due to the war.  Al Jazeera CNN New York Times Reuters

Cyber & Tech

FBI Cybercrime Report Says Americans Lost Record $10.3 Billion to Scams in 2022. A report from the FBI’s Internet Crime Complaint found that Americans lost more than $10 billion to online scammers  in 2022. This is the largest amount reported since the FBI began tracking the data in 2000. More than 800,000 complaints regarding scams were reported to the FBI, with phishing scams being the most common.  The report highlighted that Americans who are 60 years or older suffered the most, losing $3.1 billion to scammers.  Wall Street Journal

Presidential Council Urges Cyber Standards for Critical Infrastructure Sector.  The National Infrastructure Advisory Council (NIAC) is urging mandatory cybersecurity rules for critical infrastructure organizations and their technology vendors.  The NIAC’s recommendation notes the interconnection between critical sectors and rapid digitization as compounding risks to critical infrastructure and highlighted current lack of federal authority to manage critical sectors.  The recommendation also echoes the Biden administration’s national cybersecurity strategy in asking for stronger cyber regulations and standards for both vulnerable entities and their vendors.  CyberScoop

US, Europol Seize Crypto Platform ChipMixer for Alleged Illicit Cyber Activity.  European and US authorities targeted cryptocurrency platform ChipMixer over allegations that the platform was used to launder over $3 billion of cryptocurrency for drug dealers, Russian military hackers and North Korean cybercriminals like the Lazarus Group.  In the international operation against ChipMixer,  authorities seized its website and Europol reports they also seized over 40 million euros ($42.2 million) from the platform.  The US Justice Department also charged a Vietnamese national for facilitating money laundering and identity theft operations on the platform, though the suspect is not in U.S. custody.  Reuters

Ukraine Drafting Law to Merge Volunteer “IT Army” with Cyber Agencies.  The Ukrainian Government is drafting legislation to bring its volunteer IT Army hacker brigade formally into Ukraine’s armed forces. The IT Army has been responsible for cyberattacks that have taken down Russian state media websites, as well as Russian hospitals and other civilian targets. If the law passes, Ukraine will join countries such as Finland and Estonia that have adopted cyber forces into their regular militaries and could set a precedent for incorporating volunteer hacktivists into a state’s formal cyber defenses.  Newsweek

UK Doubling Funding of Quantum R&D.  The UK is investing 2.5 billion pounds over 10 years to support quantum computing research and development.  The “Plan for Quantum” will more than double funding currently allocated for quantum research.  The National Quantum Computing Centre will lead the program, but the funding will be spread around the UK to help establish a “future network of research hubs.”  Financial Times

US Quantum Startup Reveals Chip that Operates at Super Cold Temperatures.  New York-based quantum computer startup SEEQC said Wednesday it has developed a digital chip that can operate at temperatures colder than outer space.  The chip could mark a major quantum breakthrough as it can be paired with quantum processors which are often stored at extremely cold temperatures in cryogenic chambers.  Currently, quantum computers are connected through wires to classical computers that are at more moderate temperatures.  The new chip could potentially be the foundation for more powerful quantum computers as it would avoid issues associated with needing connections to classical computers and facilitate the support of more qubits.  Reuters

Hackers Target South Asian Governments with Cyber Espionage Malware. The hacker group Dark Pink has been connected to a cyberattack on military and government organizations in South Asia. According to the report from the Amsterdam-based cybersecurity firm EclecticIQ, the group has been using a malware known as KamiKakaBot that has the capabilities to steal sensitive information. The group has previously targeted military, government, religious, and non-profit organizations throughout Asia and engaged in corporate espionage.  The Record

Kremlin-Backed Hacking Group Blamed for Recent EU Attacks. A Russian backed hacking group known as Nobelium has been accused by cybersecurity researchers of being behind recent attempted cyberattacks on European Union entities. According to the report, the group launched an email phishing campaign that targeted entities who have provided aid to Ukraine. The emails allegedly had information on the Polish Ambassador’s 2023 schedule to the US and were encrypted with EnvyScout malware.  The Record

Medical Device Company Says Cyberattack Leaked Data of 1 Million People. The medical device company Zoll reported that a January 28 cyberattack leaked sensitive data of up to 1 million people.  According to Zoll, the data stolen includes names, addresses, data of birth, and social security numbers. The company is providing victims with two years of identity theft protection through Experian. The investigation is ongoing. The Record

Amazon Seeks to Launch First of Kuiper Internet Satellites in 2024.  Amazon is planning to launch its first Project Kuiper internet satellites into space in the first half of 2024.  The first satellites will undergo commercial testing shortly after.  If successful, Amazon will start mass-producing the satellites in late 2024 with the goal of establishing a network of over 3,000 of the satellites in low-Earth orbit over the next few years.  The company says it is planning to invest over $10 billion into the Kuiper network to bring it into competition with rival SpaceX’s Starlink network, which currently has 4,000 satellites in orbit.  Bloomberg Reuters

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