The threat gets worse before it gets better

Ted Gordon
1 Smilax Dr
Old Lyme, CT 06371

tedjgordon@gmail.com
 US And China Seek Arms Deal For Cyberspace
 Active Wordpress Malware Compromises Thousands Of Websites
 Huge Hack Of US Government Data Affected 21.5 Million
 Cyber Attack On U.S. Power Grid Could Cost $1 Trillion
 Silk Road Mastermind (Ross Ulbricht) Gets Life Prison Sentence
 Homeland Security Moves To Prevent Attack On Power Grid
 Zeus Malware Gang Take-down
 Hacker: 'Hundreds Of Thousands' Of Vehicles Are At Risk Of Attack
 China Acknowledges That It Has Units For War On Computer Networks
 Ransomware Porn App Takes Photos Of Users And Holds Phone Hostage
 White House Shoots Down Petition To Pardon Edward Snowden
 Heartbleed Is Far From Dead. 200,000+ Vulnerable Devices
 United (Airlines) Should Thank, Not Ban, Researcher Who Pointed Out A Major
Security Flaw
 Anthem
 Target
 Sony
 Neiman Marcus
 JPMorgan Chase
 Experian
 eBay
 Home Depot
 Department of Defense

 SCORE: about 100 million records

Relative Impact
12
Principal Objectives Systems control WMD
Theft Sabotage/espionage
10 Blackmail
Recruitment Surveillance
Intimidation
8 Terror
Money laundering
Disruption
6 US
China
Vandalism
Russia
4 N Korea
Show prowess UK
2 Iran
Israel
Actors Others
0
Hackers Lone Wolves Terrorist Organized Intel Org Nation State
Orgs Crime
 Number Killed in
a SIMAD Attack

16

14

12

10
Number of
8
When a SIMAD Might respondents
6

Kill 100,000 or more 4

0
prior to 2015 2015-203 2030-20150 2050-2075 after 2075
www.lonewolfthreat.com or never
US Cyber Command
Plan and conduct activities to defend specified
DoD information networks

Conduct military cyberspace operations to ensure

US/Allied freedom of action in cyberspace and
deny the same to our adversaries.

Assemble cyberspace resources and synchronize

war-fighting to defend the information security
environment
  Well Known Activities
 US (NSA)  Office of Personnel Mgmt
 China data breech
 Russia  Stuxnet
 Attack on SONY to prevent
 N Korea “The Interview”
 UK  MI 6 “cupcake caper”
 Iran  “Red October” data theft
 Israel malware in Word and Excel
 DDoS in Estonia, Georgia, and
 Many others Ukraine
 Cyber attacks on large banks
 Manifestos (many terrorists write them)
 Plans and Confessions (for various reasons Lone Wolves tell
plans and confess their crimes)
 Recruitment, funding (Al Qaeda and ISIS are expert, use
horror as a magnet)
 Cyber bullying (15% of all high school students last year)
 Encryption (now available to all)
 DIY Instructions (How to make a bomb in your Mom’s kitchen)
 Clandestine market places
 Dyre Wolf discovered by IBM Cyber Security
 Target: people in specific companies using email attachments
 The malware activates when the user logs onto a bank website
 A fake screen says the bank’s site is temporarily down and offers
instructions to call a phone number.
 A live “operator” answers with the name of the bank
 Users typically share their wire transfer details to withdraw funds
 The thieves then move the money to another bank to avoid detection

 On request for a download of a fake porno site to a smart phone

 Ransomware takes unauthorized photo of user
 Threatens a report to FBI, locks the phone
 Demands a “fine” of $500
Quoted from: http://www-01.ibm.com/common/ssi/cgi-bin/ssialias?subtype=WH&infotype=SA&htmlfid=SEW03073USEN&attachment=SEW03073USEN.PDF
 Dark web’s Amazon: unregulated bazaar anything bought
and sold, narcotics
 In three years 1,5 million purchases; called billion dollar
marketplace
 Ross Ulbricht convicted of seven crimes including narcotics
and conspiracy
 Sentenced to life

http://www.wired.com/2015/02/silk-road-ross-ulbricht-verdict/
 Hacking
 Viruses
 Trojan horses
 Denial of service
 Back doors Purchasing contraband

 Impersonation

 Of particular concern:
 Insertion of false information
 3.6 million PC’s are said to be infected in the U.S. alone
 Big targets (financial system, agriculture, electricity grid,
frauds)

 Hacking automated autos, trucks, aircraft control, robots

 Consumer products: AI dolls and Internet of Things

 Spy devices, tiny cameras

 Facial recognition
 Sting and honeypot operations
 Receiving information from informants
 Online surveillance: chat rooms, postings, email
 Tracking associates of known terrorists (including photos)
 Tracking purchases of poisons and bomb-making chemical
 Automated screening and synthesis of big data bases
 Third-party reporting of unusual behavior
 Psychological screening
 Consider attacks on:
 control systems (e.g. Stuxnet) create risks for transport systems,
public services (e.g. water, electricity, pipelines, industry,
sanitation, agriculture)

 algorithms create risks for financial systems, funds transfer,

equities markets, payment systems (e.g. social security)

 data bases result in lack of trust, social chaos, anarchy

 communications result in loss of command and control,

diminished trust in news reporting, and government authority

http://www.cse.wustl.edu/~jain/cse571-14/ftp/cyber_espionage/#summary
 Potential will be recognized for:
 massive disruptions from non state actors
 threat of cyber lone wolves and SIMAD
 new cyber crime targets and anti-crime weapons

 New measures for dealing with cyber crime will be devised

 technical, military, and legal solutions
 automated screening and synthesis of big data bases to identify terrorists and
possible attacks against people, data, or infrastructure.
http://www.cnn.com/2015/02/24/politics/russi
 rewards for capture of cyber criminals (e.g. $3 m by FBI) an-cyber-criminal-reward/

 International bilateral or multilateral agreements about cyber war

http://www.cse.wustl.edu/~jain/cse571-14/ftp/cyber_espionage/#summary
http://www.nytimes.com/2015/09/20/world/asia/us-and-china-seek-arms-deal-for-cyberspace.html?_r=0

 The race between cyber offense and defense will intensify

Lone Wolf Terrorism
Prospects and E-book:
Potential Strategies www.lonewolfthreat.com
to Address the
Threat
Paperback:
by www.amazon.com
Theodore J. Gordon, Co-Founder, The
Millennium Project
Yair Sharan, Director TAM-C/FIRST group,
Co-Chair Israel MP Node
Elizabeth Florescu, Director of Research,
The Millennium Project