Daily Drop (530): China's Great Firewall, Putin's Putsch Exposes Regime, China's Sea-Based Broadband Test, Less Dependence, More Factories, China's U.S. Land Ownership, U.S.-China Rivalry: Debt Crisis
06-26-23
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The Dangers Posed by China's Great Information Wall
Analyst Comments: The restriction of open-source data access by China can significantly impede accurate risk assessments and decision-making based on evidence. Misinformation or lack of information could lead to heightened tensions, mutual mistrust, and misguided policies, which could potentially escalate economic or security crises. While these measures aim to control the global narrative about China, they risk backfiring by amplifying more critical voices and creating an environment of suspicion. Simultaneously, China’s actions may self-sabotage its global competitiveness, collaborations, and trust with international stakeholders. For the U.S., it is vital to maintain a balanced policy approach that accounts for the nuances of the U.S.-China relationship and invests in infrastructure and datasets that foster a rich open-source research ecosystem.
FROM THE MEDIA: The Chinese government's recent restriction on international access to a large part of its public data, including contracts, patents, conference proceedings, dissertations, and statistical information, presents significant concerns. This decision has been linked to reports that leveraged such data to highlight potential national security risks, such as the People’s Liberation Army's desire to access and weaponize American-designed semiconductors. This move, often referred to as an extension of the 'Great Firewall', might lead to a one-sided understanding of China’s policies, potentially exaggerating perceived threats and sparking unnecessary defensive actions. Additionally, these restrictions could harm China's standing as a global leader, impede international research collaborations, and undermine trust with the global community.
READ THE STORY: Time
A huge humiliation: failed putsch exposes deep flaws in Putin’s Regime
Analyst Comments: This failed coup attempt has the potential to create significant political upheaval within Russia. The fact that a rebellion against Putin was not only attempted but also met with minimal resistance reveals a potential crisis of authority. The entire episode seems to indicate a larger sense of dissatisfaction within the military, and perhaps more broadly within Russian society, over Putin's handling of the Ukraine invasion. In order to maintain control and stabilize his regime, Putin will need to address the perceived weakness in his rule revealed by this event.
FROM THE MEDIA: Yevgeny Prigozhin, a former Kremlin caterer, attempted a coup against Russian President Vladimir Putin with his paramilitary group, Wagner. The failed attempt has significantly damaged Putin's domestic reputation and exposed potential weaknesses in his regime. The root of the rebellion was dissatisfaction within Russia's armed forces about how Putin had been managing the full-scale invasion of Ukraine. This internal crisis, coupled with frustrations over the Ukraine invasion, raises questions about Putin's strength and leadership. The Wagner group was initially formed to fight covertly in conflicts around the world but was redeployed to Ukraine when the invasion plan failed. They were permitted to increase their numbers with pardoned criminals, which gave Prigozhin significant power. Despite the coup's failure, the Kremlin is likely to dismantle the Wagner group to prevent such a scenario from reoccurring.
READ THE STORY: FT
China's first low-Earth-orbit broadband network tested at sea (State-Sponsored)
Analyst Comments: The successful sea-based tests conducted by GalaxySpace demonstrate significant progress in China's efforts to develop a low-orbit broadband internet network. The Mini Spider Constellation's ability to establish communication links with devices on a ship on the high seas showcases the potential of this technology for maritime connectivity. The optimized satellite-tracking algorithm and the addition of a sea wave-countering function further enhance the performance of the system. GalaxySpace's vision to build a commercial satellite system with global coverage reflects its ambitions to provide broadband internet and communication services on a large scale.
FROM THE MEDIA: GalaxySpace, a private satellite maker based in Beijing, has successfully conducted sea-based tests to validate the capabilities of China's first low-orbit broadband internet network, the Mini Spider Constellation. The tests took place aboard the CETC 1 testing ship in the South China Sea and demonstrated the communication link between the Mini Spider Constellation and devices on the vessel. Several satellites in low-Earth orbit facilitated signal transmission between the ship and a ground station in Lingshui, Hainan province, at an average speed of 260 megabits per second. This marked the first time the space-based system connected with a ship on the high seas. The Mini Spider Constellation, comprising six satellites launched in March 2022, operates at an altitude of 500 kilometers and offers a transmission capacity of 40 gigabits per second.
READ THE STORY: GCD
To reduce dependence on China, more of us need to work in factories
Analyst Comments: The labor shortage in Western countries highlights a pressing need to reassess our societal attitudes towards manual labor and manufacturing jobs. The prevailing focus on academic education as a means to secure comfortable, respectable careers has inadvertently led to a labor shortage in sectors that are critical for national security and economic prosperity. There is an urgent need for educational reform that promotes technical skills and vocational training for these sectors. Manufacturing jobs are no longer just about physical labor; they are becoming more sophisticated, requiring a high degree of technical expertise.
FROM THE MEDIA: Deglobalization and derisking have prompted Western countries to reduce their manufacturing dependence on China, potentially creating more manufacturing jobs domestically. However, these countries face a labor crunch as they lack a sufficient workforce for manual labor, despite growing job opportunities in sectors like mining, transportation, and manufacturing. With an education system that prioritizes academic qualifications for high-end service jobs, there are too few individuals interested or qualified for manual work. To address the labor shortage, companies like Tesla have collaborated with universities to provide necessary training. The labor crunch is occurring at a time when manufacturing jobs are becoming more sophisticated, requiring greater expertise and technical skills.
READ THE STORY: Politico
Meet the AI Protest Group Campaigning Against Human Extinction
Analyst Comments: The fear of AI causing societal collapse, as expressed by Meindertsma and his Pause AI group, reflects a growing concern in society about the rapid advancement of AI and its potential consequences. While it's crucial to consider these concerns, it's also essential to understand that AI, like any technology, is a tool whose impact largely depends on how it's used. Given the diversity of views within the AI community, it's important for governments and tech companies to take a balanced approach, advancing AI responsibly while also addressing potential risks. Pausing AI development completely could hamper beneficial progress and potential solutions to global challenges. At the same time, ignoring potential risks could lead to uncontrolled and possibly harmful scenarios.
FROM THE MEDIA: Joep Meindertsma, a 31-year-old Dutch database company owner, has become increasingly anxious about the potential threat of artificial intelligence (AI) to society. His fears escalated when OpenAI released its latest language model, GPT-4, causing him to launch Pause AI, a protest group advocating for a halt to AI development. The group, which has held small-scale protests worldwide, argues that rapidly advancing AI capabilities could risk societal collapse and even human extinction. Meindertsma is particularly concerned about the potential for AI to be used in large-scale hacking, leading to societal breakdown, and for AI to advance to a "super-intelligent" state, potentially deciding to eliminate humans.
READ THE STORY: Wired
China owns 300,000 acres of land in the U.S. Here's where
Analyst Comments: The escalating concerns about Chinese land purchases in the US reflect the broader geopolitical tensions and strategic competition between the two countries. It underscores the need for a comprehensive approach that considers national security interests while also maintaining a welcoming environment for foreign investment. It is essential to have a robust mechanism for monitoring and controlling foreign ownership, particularly near critical infrastructure and military bases. Policymakers also need to strike a careful balance to avoid potential backlash against foreign investors or fostering xenophobia. The need for updating the USDA's system for tracking foreign purchases is evident, and it's crucial that Congress approves the necessary funding for this upgrade. This will ensure timely reporting and better oversight of foreign land purchases in the US. The fines for late or false filings could be increased to incentivize compliance.
FROM THE MEDIA: Chinese companies and investors have been purchasing US land and major food companies over the past four decades, sparking concern among lawmakers and policymakers who view China as a strategic adversary. There are fears that China could gain control over the US food and energy supply and potentially access US-based information, although Chinese-owned land constitutes a minor fraction of all foreign-owned land in the US. Despite these concerns, data on where the Chinese-owned land is and whether it's near military installations is limited. Three large entities, Smithfield Foods, and companies owned by billionaire Sun Guangxin and the Walton Group International, own substantial parts of Chinese-bought land. Meanwhile, lawmakers are proposing bills to limit Chinese ownership, and the Biden administration is tightening rules on who can buy land near military bases.
READ THE STORY: NPR
Chinese Hackers Using Never-Before-Seen Tactics for Critical Infrastructure Attacks
Analyst Comments: The operations of Volt Typhoon highlight the increasing sophistication of nation-state cyber-espionage activities. Their advanced techniques, including careful exploitation of software vulnerabilities and focus on operational security, represent a significant threat to targeted organizations. Their use of a backdoored Apache Tomcat library also represents a previously unseen technique that could evade detection by conventional security measures. The group's ability to cover their tracks suggests a high degree of skill and knowledge.
FROM THE MEDIA: A Chinese nation-state actor, known as Volt Typhoon or Vanguard Panda, has been engaging in sophisticated cyber-espionage operations against U.S government, defense, and other critical infrastructure organizations since mid-2020. Cybersecurity firm CrowdStrike discovered the group's tradecraft, which includes exploiting vulnerabilities in ManageEngine Self-service Plus for initial access, utilizing custom web shells for persistent access, and employing living-off-the-land (LotL) techniques for lateral movement within networks. One uncovered technique involves a backdoored Apache Tomcat library, which is a new method of maintaining persistence. The actor was also found to tamper with access logs to obscure their trail but failed to account for Java source and compiled class files, revealing additional web shells and backdoors.
READ THE STORY: THN
Singapore, Amazon, lead push for 'purpose bound' digital money
Analyst Comments: The introduction of Purpose Bound Money in Singapore demonstrates the potential for digital currency to be used more efficiently and securely, benefiting both consumers and merchants. The collaboration between the US and India on software-driven diplomacy reflects the increasing importance of digital infrastructure in shaping international relations. The announcement of Suzuki's plans to manufacture flying cars signifies the advancements in transportation technology and the potential for air mobility solutions. Indonesia's satellite launch and China's growing number of 5G subscribers underline the region's focus on expanding connectivity and digital infrastructure.
FROM THE MEDIA: Singapore's central bank, the Monetary Authority (MAS), has proposed the concept of "Purpose Bound Money" (PBM), which combines digital money with programmed conditions for its use. Amazon, FAZZ, and Grab are collaborating on an e-commerce use case for PBM, where payment is released to the merchant only after the customer receives the purchased items. The US has partnered with India to advance its software-driven diplomacy push, focusing on digital public infrastructure (DPI) for inclusive development and competitive markets. Japanese automaker Suzuki plans to manufacture flying cars in collaboration with startup SkyDrive. Indonesia has celebrated the launch of the SATRIA-1 satellite, which will provide internet services across the country's islands. Hong Kong's unofficial anthem, "Glory to Hong Kong," has begun to disappear from online platforms following the local government's injunction to ban the song. China's carriers reported a total of 1.2 billion 5G subscribers, showcasing the nation's continued appetite for 5G technology.
READ THE STORY: The Register
Man charged with running $18 million ‘Monopoly’ darknet marketplace
Analyst Comments: The case highlights the increasingly complex and global nature of cyber-enabled crimes. It also emphasizes the growing challenge for law enforcement in tracking and prosecuting such cross-border crimes, particularly when they involve the use of cryptocurrencies and the darknet. Furthermore, the takedown of the Monopoly Market underscores the potential for law enforcement to infiltrate and dismantle these criminal enterprises, albeit temporarily. This event may serve as a warning to other darknet marketplace operators, signaling the increased capabilities of international law enforcement in tracking, investigating, and prosecuting darknet-based criminal activities.
FROM THE MEDIA: Milomir Desnica, a 33-year-old citizen of Croatia and Serbia, has been charged by the U.S. Department of Justice (DOJ) for operating a drug trafficking platform on the darknet called Monopoly Market. Since late 2019, Desnica is alleged to have used this platform to facilitate the sale of various drugs, including opioids, stimulants, psychedelics, and prescription medications, resulting in earnings of approximately $18 million through cryptocurrency transactions. He is facing charges of money laundering, as well as possession and distribution of methamphetamine, after being extradited from Austria. His earnings were allegedly laundered through at least two cryptocurrency exchange services, which were subsequently exchanged for fiat currency in Serbia.
READ THE STORY: THN
The U.S.-China Rivalry Is Complicating the World’s Debt Crisis
Analyst Comments: The Suriname crisis highlights the complex interplay between global power dynamics and the economic plight of middle- and lower-income countries. China's growing role as a major lender presents a significant challenge to established norms in international finance and global governance, largely because of its different approach to lending, which contrasts with institutions like the IMF. The conflict between the U.S. and China, the world's two largest economies, complicates the debt relief processes for struggling countries like Suriname. In the absence of a cooperative solution, the most vulnerable suffer, as demonstrated by Suriname's dire situation.
FROM THE MEDIA: Suriname, a South American country with 600,000 inhabitants, is dealing with an intense financial crisis due to global events, a history of poor governance, and an economy heavily reliant on commodity exports. Suriname is caught in a geopolitical conflict between the United States and China, as it struggles to meet its debt obligations and negotiate debt relief. A significant portion of its $2.4 billion foreign debt is owed to Chinese creditors. The International Monetary Fund (IMF), a traditionally dominant source of financial relief, is set to provide Suriname with a three-year, $690 million low-interest loan package. However, the IMF and the United States are pressing China to restructure Suriname's $545 million debt before they move ahead with their own debt relief, creating a deadlock. This situation is causing severe hardships for ordinary Surinamese, as the government is forced to cut public spending and the local economy suffers due to inflation and a devalued currency.
READ THE STORY: The New York Times
What we know about the cyberattack on the city of Fort Worth
Analyst Comments: The cyberattack on Fort Worth's municipal website highlights the vulnerability of public infrastructure systems to cyber threats, even when sensitive data is not directly at stake. It underscores the need for strong cybersecurity measures, including multifactor authentication, across all areas of municipal services. The group responsible, SiegedSec, positions themselves as hacktivists, allegedly launching the attack for political reasons rather than financial gain. While the immediate damage appears limited, the incident stresses the need for ongoing vigilance against a broad spectrum of cyber threats.
FROM THE MEDIA: The city of Fort Worth is investigating a cyberattack on its systems after one of its municipal websites was hacked. The breach was conducted by a group known as SiegedSec, a self-proclaimed hacktivist group. The website compromised is used to facilitate maintenance work orders for various city departments, and the data involved, according to city officials, does not contain sensitive information. The hackers gained access through stolen login information, though how they obtained this information remains unknown. No ransom has been demanded, and no encryption of files has been detected.
READ THE STORY: The Dallas Morning News
North Korean state hackers have been discovered using wiretapping malware
Analyst Comments: This development underscores North Korea's ongoing involvement in cyber espionage. The state-sponsored group APT37 is known for targeting individuals opposing the North Korean regime, including human rights activists and defectors. The sophistication of these attacks, coupled with the precision of spear-phishing techniques, makes them hard to detect for many individuals, emphasizing the importance of remaining vigilant when handling files from unknown sources.
FROM THE MEDIA: North Korean state-sponsored hackers, known as APT37, have been implementing surveillance attacks using wiretapping malware, according to South Korean cybersecurity firm AhnLab. The malware was reportedly distributed via spear phishing emails containing a password-protected document and a disguised CHM (Compiled HTML Help File). Upon opening the CHM, a malicious PowerShell backdoor is launched, enabling hackers to execute commands, collect files and information, and alter registries, among other actions. APT37 has also used the malware to carry out information theft through a feature called FadeStealer, which can log keystrokes, steal data, capture screenshots, and wiretap devices.
READ THE STORY: CyberSecurityConnect
Diablo IV and other Blizzard games were taken down by a DDoS attack
Analyst Comments: DDoS attacks are increasingly common in the gaming industry, with platforms like Blizzard's Battle.net frequently targeted. These attacks can disrupt services, frustrate users, and potentially damage a company's reputation. While Blizzard typically reacts quickly to such incidents, the increasing frequency and sophistication of DDoS attacks require ongoing vigilance and investment in cybersecurity measures.
FROM THE MEDIA: Over the weekend, Blizzard Entertainment experienced a Distributed Denial of Service (DDoS) attack that disrupted access to several of its games, including Diablo IV. After investigating user-reported issues with authentication servers, Blizzard confirmed the DDoS attack on its systems was the cause of failed or slow login attempts. Although the company's customer support channel announced the end of the attacks on the same day, the disruption significantly affected many players' gaming time. Currently, it remains unclear which threat actor is responsible for the attack.
READ THE STORY: TechRadar
BlackCat ransomware gang publishes 1.4TB of data stolen from Australian law firm HWL Ebsworth
Analyst Comments: This incident illustrates the growing threat that ransomware poses to organizations across all sectors, including law firms that handle sensitive client information. HWL Ebsworth's decision not to pay the ransom demonstrates a stance many organizations are encouraged to take to deter future attacks. However, the subsequent publication of a large amount of stolen data underscores the serious consequences of these attacks.
FROM THE MEDIA: The ALPHV/BlackCat ransomware gang claimed to have infiltrated HWL Ebsworth's internal systems and exfiltrated substantial amounts of data, as disclosed in the firm's data security incident notice. The law firm immediately engaged cybersecurity experts from McGrathNicol to investigate the breach and clarify its extent. While the hackers accessed part of the firm's system, the core document management system remained unaffected. The ransomware gang demanded a ransom, threatening to publish the stolen data if not met. The hackers reportedly infiltrated employees' systems and stole about 4 terabytes of data, comprising client and staff documents. After HWL Ebsworth decided not to pay the ransom, the gang published about 1.4 terabytes of the stolen data on the dark web and threatened to release the rest soon.
READ THE STORY: TEISS
Items of interest
Aerial Surveillance: A Threat to the National Security of States?
Analyst Comments: Balancing the benefits and potential misuse of these technologies is a crucial task. Regulatory measures, international cooperation, and ensuring transparency and accountability are required to manage these challenges. The narrative underscores the necessity for open discussions, informed decision-making, and stringent policy implementations. The growing sophistication of global societies makes the urgency of addressing these issues more prominent. While the advancement in surveillance technologies is likely to continue, it is critical to prioritize human values, rights, and freedoms in their management.
FROM THE MEDIA: This piece discusses the rising implications of aerial surveillance technologies, such as drones, satellites, and spy balloons, in the 21st century, drawing from historical contexts and philosophical theories by Michel Foucault and Ulrich Beck. These technologies have greatly evolved over the years, and are used extensively for maintaining national security, preventing crime, and ensuring law and order. However, the misuse of such technologies poses significant threats to privacy, civil liberties, and international stability. Notable instances include the U2 incident in the 1960s, the war on terror, and the use of surveillance technology in recent conflicts like the Russia-Ukraine war, and activities in the South China Sea. Additionally, the advancement of these technologies also carries inherent risks of misuse, data leaks, and violation of airspace.
READ THE STORY: Modern Diplomacy
Spy Satellite Expert Explains How to Analyze Satellite Imagery (Video)
FROM THE MEDIA: Keith Masback, former Director of Intelligence, Surveillance, and Reconnaissance Integration for the US Army, explains how to understand satellite imagery, and provides a few tips and tricks for what people like him are generally looking for. Keith talks about how to tell man-made and natural environments apart from each other and breaks down what typical military routines from other countries look like.
The Man Who Hunts Spy Satellites (Video)
FROM THE MEDIA: We went to Paris to interview premier astrophotographer, Thierry Legault, about tracking spy satellites in the sky. It's a story of mutual surveillance, adept tracking, and ultimately one man's quest to do "things that nobody has done before."
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.