Daily Drop (481): Sequoia funds Chinese tech, Ukraine lifts grain ban, Chatroom for US secrets, China urges Taliban to address terrorism, Iran's cyber war strategy, Hollywood’s Killer Robots
05-07-2023
Sunday, May 07, 2023 // (IG): BB // Cloak & Dagger// Coffee for Bob
The Next Fear of A.I.: Hollywood’s Killer Robots Become the Military’s Tools
Analyst Comments: The article highlights the need for a broader discussion around arms control, especially in relation to the use of AI in weapons development. It raises concerns about the potential risks of AI-driven weapons and the lack of international agreements on the issue. The article also shows the tension between slowing the development of AI and the fear that adversaries may not do the same. The potential consequences of AI in national security and decision-making, as well as its role in disinformation and cyberattacks, are also examined.
FROM THE MEDIA: US President Joe Biden's recent warning about the potential dangers of artificial intelligence (AI) has highlighted concerns about the use of AI in weapons development and the need for arms control. Some officials fear that AI could speed up confrontations between superpowers and lead to autonomous killer robots or computers that lockout human creators. Although the US has restricted the sale of advanced computer chips to China in part to slow its efforts to develop AI-driven weapons, Pentagon officials believe that a pause in developing the next generations of AI software is a bad idea, as potential adversaries are unlikely to stop. Despite ongoing efforts to self-regulate and the existence of rules on autonomous weapons, there are no treaties or international agreements on AI in combat or national security, leaving the issue unresolved.
READ THE STORY: The New York Times
How top Silicon Valley investor Sequoia bankrolls China’s tech
Analyst Comments: The investment of US funds in Chinese AI firms raises concerns about potential risks to US national security interests. The US government has been increasingly wary of investments in Chinese AI and semiconductors, fearing that they could benefit China's military and technological capabilities. While investments in Chinese AI startups may provide financial benefits to US investors, they could potentially harm US national security interests.
FROM THE MEDIA: Chinese venture capital firms, including Sequoia Capital China, Matrix Partners China, Qiming Venture Partners, and Hillhouse Capital Management, are receiving funding from US investors, including US endowments, to invest in Chinese AI startups. The investments have raised concerns among US government officials as they may benefit a geopolitical rival. Sequoia China recently invested in a new AI venture created by a top AI researcher from Beijing's Tsinghua University, who also co-founded another startup backed by the firm. Similarly, Matrix and Qiming funded Frontis, a Beijing-based AI startup that has compared its product to ChatGPT.
READ THE STORY: The Sunday Times // The Information
Ukraine Welcomes Lifting of Ban on Grain Shipments to Neighbors
Analyst Comments: The article provides a comprehensive overview of the growing issue of illicit activity on Telegram and the challenges related to it. The different types of channels and the tactics used by cybercriminals are well-explained. The article also highlights the challenges that law enforcement authorities face in monitoring these activities. However, it would have been helpful to provide more information on the specific measures Telegram is taking to address the issue, such as how it is dealing with reports of illicit activities on the platform.
FROM THE MEDIA: Illicit activity on secure messaging apps like Telegram has made it harder for authorities to monitor and regulate criminal activities. Telegram has become an attractive avenue for cybercriminals due to its end-to-end encryption and anonymity, allowing criminals to create channels and communities specifically to conduct criminal activities. There are many types of channels on Telegram that range from legitimate to nefarious. Some of the most common types of illicit channels found on Telegram include carding, bank account logins, DDoS attacks, botnets, SIM swapping, user data lists, Russian hacktivism, and stealer logs. Criminals employ various tactics to acquire sensitive data through phishing, skimming, data breaches, and social engineering. The rise of cryptocurrencies has also contributed to the popularity of these illicit channels. Telegram has attempted to mitigate these issues through its terms of service agreement and by encouraging users to report any criminal channels or activity.
READ THE STORY: Security Boulevard
Coping with Chinese Sensors
Analyst Comments: The article provides a detailed analysis of China's C4ISRT complex and its impact on international policymakers' perceptions and behaviors. The author presents the concept of hyper-objects and explains how China's C4ISRT complex fits this definition. The article's assessment of the hyper-object's non-locality, non-human timescale, and viscosity effectively explains the complex nature of the network's operation and its potential impact. The author concludes by providing practitioners with three rules of thumb for interacting with the Chinese C4ISRT hyper-object. Overall, the article is informative and thought-provoking, offering a unique perspective on the implications of China's C4ISRT network.
FROM THE MEDIA: China has built a comprehensive C4ISRT network consisting of active and passive sensors, analysts, and ICT professionals that can identify, track, target, and engage hostile forces across different warfare domains. The network is characterized by its ability to use sensor data from various systems to direct long-range rocket artillery fires, making it a hyper-object that operates at a non-human timescale and impacts human social behaviors. China's C4ISRT complex has become its center of gravity, enabling it to conduct a range of kinetic and non-kinetic actions globally. However, there can be no complete picture of the C4ISRT hyper-object, and its emergent behaviors cannot be accurately predicted.
READ THE STORY: Force India
Ukraine Welcomes Lifting of Ban on Grain Shipments to Neighbors
Analyst Comments: The agricultural ban imposed by Poland on Ukraine, which then influenced neighboring countries to do the same, has had a significant impact on the Ukrainian economy. This highlights the challenges Ukraine faces in its efforts to expand its agricultural exports, particularly in terms of its potential membership in the EU. The crisis also underscores the importance of finding new ways of exporting Ukrainian agricultural products. The European Commission played a vital role in negotiating a resolution that satisfied all parties, and its efforts to find new ways of exporting Ukrainian agricultural products must continue to support Ukraine's economy.
FROM THE MEDIA: Poland's ban on Ukrainian agricultural products last month has cost Ukraine $143 million in a month, according to Deputy Minister of Economy Taras Kachka. Poland suspended imports of grain and other agricultural products from Ukraine shortly after Ukrainian President Volodymyr Zelenskyy's early April visit, due to concerns about a flood of Ukrainian grain that, before the war, would have been shipped farther afield through Black Sea ports. Hungary, Slovakia, Bulgaria, and Romania followed suit. Ukrainian agricultural businesses were shocked by the decision and struggled with the long-term implications. After lengthy negotiations, the European Commission agreed to allocate 100 million euros as compensation to farmers adversely affected by the glut of Ukrainian grain. The Ukrainian wheat, maize, rapeseed, and sunflower seed can be sold to any country in the EU except for the five countries that had complained that the cheaper Ukrainian agricultural product was making their domestic production unprofitable.
READ THE STORY: VOA
Chatroom trade: inside the online marketplace for US secrets
Analyst Comments: The ease with which these forums can be accessed online makes it seem like the tip of an iceberg, said one US diplomat. Even old classified documents have operational value - they show how the US approaches problems, how it assesses threats, and how it trains people. US officials are scrambling to assess the scale and impact of the disclosures, and the FBI declined to comment on the scale and seriousness of the wider leaks. The relative scarcity of US government-related material compared with Russian data makes fresh leaks exceptionally valuable. There is a lingering risk from the disclosure, with a real possibility that some of the documents had yet to surface, or that new, doctored ones could appear in Russian disinformation campaigns.
FROM THE MEDIA: The Financial Times has published an investigation into the sale of classified and sensitive US government information on hacker and conspiracy theory forums. The report is based on the observation of several such forums for over two weeks, and the researchers found tens of thousands of pages of documents, from repackaged nuggets from previous hacks to classified documents newly harvested from security breaches. The traders, often anonymous, trade the documents for cash or bragging rights, with some boasting of trading in better material than they are posting. Access to these forums does not require passwords, special software, or knowledge of the dark web, meaning that the data available is a mere fraction of what is out there. One diplomat said that “even old classified documents have operational value – they show how we approach problems, how we assess threats, how we train people.” Many of these hacks are the work of insiders, such as Edward Snowden, Chelsea Manning, or Joshua Schulte.
READ THE STORY: FT
China Asks Afghanistan's Taliban to Address Terrorism Worries
Analyst Comments: The trilateral dialogue between China, Pakistan, and the Taliban-ruled Afghanistan shows China's continued efforts to increase its influence in the region by extending its Belt and Road Initiative (BRI) project to Afghanistan through CPEC. It also highlights Pakistan's strategic importance in the region as a mediator between the Taliban and China. The dialogue comes amid growing concerns about the security situation in Afghanistan and the threat of terrorism, especially from the Islamic State affiliate known as IS-Khorasan. The talks also addressed Pakistan's core issue of terrorism and its worries stemming from a spike in terrorist attacks since the Taliban takeover of Afghanistan.
FROM THE MEDIA: Pakistan hosted a trilateral dialogue on May 6th with China and the Taliban-ruled Afghanistan to promote regional security, trade, transit, and counterterrorism collaboration. The talks were aimed at supporting the de facto Afghan authorities in economic reconstruction and promoting the security of neighboring countries. During the meeting, the delegates discussed political engagement, counterterrorism, trade, and connectivity. The Chinese and Pakistani delegates shared their security concerns and pressed the Taliban to maintain friendly relations with their neighbors and take stronger measures to counter terrorist forces within Afghanistan. The Chinese government also pledged to link landlocked Afghanistan to the multibillion-dollar infrastructure development project in Pakistan called the China-Pakistan Economic Corridor (CPEC).
READ THE STORY: VOA
How China, Russia Might Capitalize on US Debt Limit 'Chaos'
Analyst Comments: The article highlights the potential consequences of a failure to raise the US debt ceiling, with particular attention paid to the ways in which China and Russia might use such a situation to their advantage. It also provides some historical context for the issue, noting that the debt ceiling has been raised many times in the past but has become increasingly politicized in recent years. The article presents a balanced view of the issue, quoting both Office of Management and Budget Director Shalanda Young and House Republicans, as well as President Joe Biden, to give readers a range of perspectives.
FROM THE MEDIA: The impasse between House Republicans and President Joe Biden over raising the US debt ceiling is seen as a gift to America's adversaries, particularly China and Russia, who could use a potential US default to spread disinformation campaigns and argue that their systems of government are better than democracy. If Congress doesn't raise the debt ceiling in the next few weeks, the US will default on its obligations, which has never happened before in American history. The vote has become increasingly partisan in recent years, with House Republicans insisting on federal spending cuts before raising the debt ceiling, while President Biden says he will not negotiate on this issue.
READ THE STORY: VOA
The Reality Behind Pakistan’s Industries Shutting Down
Analyst Comments: The article provides a clear and concise summary of the current economic situation in Pakistan. It highlights the impact of the ongoing economic crisis on various sectors of the country's economy, including the auto industry, petroleum industry, and agriculture. The article also suggests some potential solutions, such as investing in the IT industry and modern agricultural practices. However, the article could have provided more context and analysis of the root causes of Pakistan's economic crisis and the government's policies to address the issue.
FROM THE MEDIA: Pakistan is facing a severe economic crisis due to persistent policies, political instability, and recent floods. Various sectors, including the auto industry, petroleum industry, and agriculture, have been adversely affected. Many prominent organizations and enterprises have shut down their operations, while others are struggling to keep up. The country's real GDP growth rate is less than half of what was expected in June, according to the World Bank's "Global Economic Prospects-January 2023" report. The article suggests that Pakistan needs to adopt a comprehensive, nonpartisan economic system and invest in its IT industry and agriculture to attract foreign investment and lower unemployment.
READ THE STORY: Modern Diplomacy
Does Iran see cyber war as a way to avoid real war?
Analyst Comments: The increasing frequency and sophistication of cyberattacks pose significant challenges to countries and organizations in the Middle East. Iran has been claiming its cyber capabilities and threatening Israel's security through its cyberattacks. Meanwhile, the UAE’s Cybersecurity Council has been successful in defending against such attacks and has countered various cyber-terrorist organizations. The banking, financial, health, oil, and gas sectors are the most targeted in the region.
FROM THE MEDIA: According to a recent article by Tasnim, a pro-regime news outlet, Iran has claimed that it has become increasingly proficient in cyber abilities and has sought to target Israeli websites as “part of the cyber war that targets Israel's security.” Israel is not the only country targeted by cyber incidents, and cyberattacks originate from many countries and nefarious actors. The UAE’s Cybersecurity Council has affirmed its success in defending and confronting various malicious cyber attacks, including cyber-terrorist organizations, that failed to target infrastructure, national digital assets, and strategic sectors in the UAE. The council cooperates with partners in deterring over 50,000 cyberattacks per day, which target strategic national sectors. The banking, financial, health, oil, and gas sectors are the most targeted.
READ THE STORY: JPOST
How hackers are recruiting on the dark web
Analyst Comments: The article highlights the emerging trend of cybercrime groups operating like businesses and recruiting on the dark web to fill various roles. The anonymity provided by the dark web makes it difficult for law enforcement agencies to track down cybercriminals. It is crucial to enhance cybersecurity measures and invest in cybersecurity talent and resources to keep up with the changing threat landscape. The article also cautions individuals against participating in cybercrime, as the financial rewards are often short-lived and the legal consequences can be severe.
FROM THE MEDIA: Cybercrime groups are recruiting on the dark web for various roles such as data analysts, malware developers, and IT administrators to operate more efficiently and effectively. With ransomware and other cyber attacks becoming more profitable, the trend of cybercrime as a business is rising. The anonymity of the dark web can make it difficult for law enforcement agencies to track down cybercriminals. The rise of cybercrime as a business emphasizes the need to improve cybersecurity measures and invest in cybersecurity talent and resources to keep pace with the evolving threat landscape.
READ THE STORY: The Sunday Times // Cyber Centric
Japanese companies seeking US deals fear more scrutiny of China links
Analyst Comments: The increased scrutiny of Japanese companies' business activities in China is a significant development that could affect their plans to pursue more deals in the US. As the US and China continue to be embroiled in geopolitical tensions, it is not surprising that Cfius is paying closer attention to non-US companies' connections to China. Japanese companies may find it challenging to balance their business interests in China and the US, and they may need to think carefully about their interconnectivity with China. Nevertheless, while the Cfius review process may become more rigorous and thorough, it is unlikely that Japanese deals in the US will face a greater likelihood of being blocked.
FROM THE MEDIA: Japanese companies' plans to pursue more deals in the US may face challenges due to intensified scrutiny of their business activities in China. The Committee on Foreign Investment in the US (Cfius) has been screening deals by non-US companies and has recently increased its reviews of buyers' connections with China. Although Cfius scrutiny affects prospective buyers from anywhere outside the US, Japanese companies may be particularly vulnerable due to their decades of investment, supply chains, joint ventures, and other business connections in China. Lawyers warn that the depth of a company's ties to China could create complexities in a review, and companies may find it increasingly difficult to navigate between the US and China.
READ THE STORY: FT
“We Have No Moat, And Neither Does OpenAI”: Leaked Google Document Breaks Down the Exponential Future of Open Source LLMs
Analyst Comments: The leaked document offers an interesting perspective on the current state of language model development and the role of open-source models. While the document is only the opinion of a Google employee, it raises important points about the limitations of large models and the advantages of open-source development. The document's arguments are well-supported and could serve as a starting point for further discussion and analysis of the open-source LLM landscape.
FROM THE MEDIA: A leaked document from a Google employee reveals that Google and OpenAI are not positioned to win the arms race in language model development due to the rapid progress of open-source LLM offerings. Open-source models are faster, more customizable, more private, and more capable than Google and OpenAI models. The document outlines how open-source LLMs have solved many major problems in the field, including LLMs on phones, scalable personal AI, responsible release, and multimodality. The document also argues that Google's large models are slowing down progress and that the company should focus on enabling 3P integrations, considering where its value add really lies, and making small variants more than an afterthought.
READ THE STORY: OODALOOP
New York AG Seeks Landmark Crypto Law, Cites ‘Dysfunction’
Analyst Comments: The proposed regulations in New York reflect the growing concern among regulators globally to tighten oversight of the cryptocurrency industry. The measures proposed by James are comprehensive and could serve as a model for other US states or countries that seek to regulate cryptocurrencies. However, critics of the regulations argue that they could stifle innovation in the industry and drive companies away from the state.
FROM THE MEDIA: New York Attorney General Letitia James has proposed a new state law to introduce tighter rules over cryptocurrency companies, citing rampant fraud and dysfunction in the industry. If adopted by state lawmakers, the new measures would require crypto exchanges to conduct independent public audits, bar people from owning both brokerages and tokens to prevent conflicts of interest and require crypto platforms to reimburse customers who are victims of fraud. The proposed legislation would also prevent crypto brokers and marketplaces from trading in their own accounts and prohibit brokers from borrowing or lending customer assets.
READ THE STORY: Bloomberg
China: Anti-espionage law heightens risks for foreign firms
Analyst Comments: China’s new anti-espionage law is likely to exacerbate tensions between China and the West. This comes at a time when Western multinationals are looking to diversify their supply chains and shift investment plans to Southeast Asia, India, and other economies. Foreign business groups have also warned that the new law may increase the risk of people being given arbitrary exit bans. The law's ambiguity regarding the definition of information related to national security will create difficulties for companies operating in China. The new law also makes it easier for Chinese authorities to investigate foreign companies and to target dissidents, activists, and civil society groups.
FROM THE MEDIA: China has passed changes to its anti-espionage law that may create legal risks for foreign firms operating in the country. The revised law expands the definition of espionage to include cyber attacks against state organs or critical information infrastructure, enabling authorities to gain access to data, electronic equipment, and information on personal property. The new law also permits the authorities to ban border crossings while carrying out an anti-espionage investigation. Teng Biao, a legal scholar, believes the changes reflect Beijing's deep fear of foreigners instigating a "color revolution," or a popular, pro-democracy uprising, in China.
READ THE STORY: Devdiscourse
Items of interest
Colonial Pipeline attack: two year anniversary
Analyst Comments: The Colonial Pipeline attack serves as a stark reminder of the vulnerability of critical infrastructure to cyberattacks and the need for stronger cybersecurity regulations. While the incident led to new directives and penalties, the recent security incident in a Canadian gas pipeline highlights the continued risk of attacks on critical infrastructure. The CEO of software company Xage Security has called for the adoption of zero-trust strategies to prevent future attacks.
FROM THE MEDIA: In May 2021, the US suffered one of the most significant cyberattacks on energy infrastructure to date, when the Colonial Pipeline was attacked by DarkSide ransomware. The attack forced the company to temporarily halt all 5500 miles of pipeline operations, impacting millions of people on the east coast of the US, and leading to long lines at gas pumps and increased gas prices. The incident highlighted the persistent concern about pipeline security and the need for stronger cybersecurity regulations in the industry. In response, the US Cybersecurity and Infrastructure Security Agency (CISA) issued directives for pipeline operators to report cyberattacks and improve their resilience. In May 2022, the Department of Transportation’s Pipeline and Hazardous Materials Safety Administration announced plans to impose up to $1 million in penalties against Colonial Pipeline related to multiple control room violations.
READ THE STORY: World Pipelines
Weaponizing the Law (Video)
FROM THE MEDIA: The Tow Center for Digital Journalism and Thomson Reuters Foundation's research on attacks on media freedom is an important contribution to understanding the challenges faced by journalists and the media industry worldwide. By convening a discussion with media defense experts, the report can help identify areas for future research and data collection to better understand the scale and impact of these threats. This can help advocacy groups, legal professionals, governments, intergovernmental organizations, and journalists themselves to develop strategies to counter these threats and protect press freedom.
ThinkJSOU with Dakota Cary: U.S. and Chinese Cybersecurity (Video)
FROM THE MEDIA: Retired OL Nancy Blacker, adjunct faculty at the Joint Special Operations University (JSOU), interviewed Dakota Cary, a nonresident fellow at the Atlantic Council’s Global China Hub and consultant at Krebs Stamos Group, to discuss the similarities and differences in cybersecurity between the United States and China. The conversation covered various topics, including cyber security responsibility, critical infrastructure protection, growth and development of the cyber security workforce, and offensive and defensive cyber operations.
These open-source products are reviewed by analysts at InfoDom Securities, providing possible context about current media trends related to the realm of cyber security. The stories selected cover a broad array of cyber threats and are intended to aid readers in framing key publicly discussed threats and overall situational awareness. InfoDom Securities does not endorse any third-party claims made in their original material or related links on their sites; the opinions expressed by third parties are theirs alone. For further questions, please contact InfoDom Securities at dominanceinformation@gmail.com.