Not to be Out-Spooked by the NSA...

The FBI is expected to reveal Thursday that because of the rise of Web-based e-mail and social networks, it's "increasingly unable" to conduct certain types of surveillance that would be possible on cellular and traditional telephones.

FBI general counsel Valerie Caproni will outline what the bureau is calling the "Going Dark" problem, meaning that police can be thwarted when conducting court-authorized eavesdropping because Internet companies aren't required to build in backdoors in advance, or because technology doesn't permit it.

Any solution, according to a copy of Caproni's prepared comments obtained by CNET, should include a way for police armed with wiretap orders to conduct surveillance of "Web-based e-mail, social networking sites, and peer-to-peer communications technology." (more)

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Recent Technological Innovations Have Completely Changed the Game of Espionage

According to the FBI, competitors criminally seek economic intelligence by aggressively recruiting employees and conduct economic intelligence through bribery, cyber attacks, theft of property, dumpster diving and wiretapping.  

They also establish seemingly-innocent business relationships between foreign companies and U.S. industries to gather economic intelligence, including trade secrets. 

Technologies Used for Espionage

Many of the technologies now used for espionage are just updated versions of previous technology: smaller, lighter and orders of magnitude more powerful.

• Spying Equipment
• Spy Cameras
• Lock Picks
• Computer Hacking
• Network Intrusion
• Video Pen Cameras
• Miniature Cameras
• Mobile Phone Spy Gadgets
• Call Recorders
• SIM Card Readers
• Stun Guns Looking Like Cell Phones
• Telebugs
• Bionic Ear Boosters
• Voice Changers
• Audio Jammers
• Wireless Video Cameras
• Pinhole Video Cameras
• Google Glass type sunglasses, or glasses that record video, pictures and sound
• Asset Tracking Devices
• GPS Tracking Devices

Equipment to Protect You from Spies

• Cellphone Detectors
• Bug Detectors
• Thermal Vision
• Surveillance Cameras (more)

And, of course, us.

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Economic Espionage: Competing For Trade By Stealing Industrial Secrets

In September 2012 FBI agents in Kansas City, Missouri, arrested two Chinese nationals, Huang Ji Li and Qi Xiao Guang, after they paid $25,000 in cash for stolen trade secrets pertaining to an American company’s manufacture of cellular-glass insulation, or foam glass.

Huang trespassed onto the company’s flagship plant in Sedalia, Missouri, 3 months prior and asked suspiciously detailed questions about the facility’s manufacturing process for the insulation. It also is believed he approached an employee at the company’s corporate headquarters in Pittsburgh, Pennsylvania, just days before seeking to build a foam-glass factory in China.

A judge sentenced Huang to 18 months in prison and a $250,000 fine in January 2013 and Qi, Huang’s interpreter, to time served, a $20,000 fine, and deportation. During sentencing, company officials estimated the value of the targeted trade secrets at $272 million. 

The threat of economic espionage and theft of trade secrets to U.S.-based companies is persistent and requires constant vigilance. Even after Huang was arrested, pled guilty, and was sentenced, investigators believed the company’s trade secrets still were at risk for targeting by would-be competitors. (more)

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Hacker Who Helped Catch Cheating Lovers in FBI's Sights

Among the five people added this week to the FBI's list of "most wanted" cyber criminals is a former San Diego college student who developed an $89 program called "Loverspy" or "Email PI." Sold online from his apartment, the program was advertised as a way to "catch a cheating lover" by sending the person an electronic greeting card that, if opened, would install malicious software to capture emails and instant messages, even spy on someone using the victim's own webcam.

Click to enlarge.

The case of Carlos Enrique Perez-Melara, 33, is noteworthy because he appears to have made relatively little money on the scheme, unlike others on the FBI list who were accused of bilking millions of dollars from businesses and Internet users worldwide. But Perez-Melara, a native of El Salvador who was in the United States on a student visa in 2003 when he sold the spyware, allegedly helped turn average computer users into sophisticated hackers who could stalk their victims...

In addition to hacking-for-hire services, there is an established commercial market for snooping software that domestic violence advocates warn can also be used to stalk victims. Software such as ePhoneTracker and WebWatcher, for example, are advertised as ways to monitor kids' online messages and track their location. For $349 a year, Flexispy of Wilmington, Del., promises to capture every Facebook message, email, text and photo sent from a phone, as well as record phone calls. These services generally would be legal only if the person installing the software also owned the device or were given consent by the owner. (more)

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"You know, it's just a Toys-r-Us kind of thing."

The FBI employs drones in domestic surveillance operations, Director Robert Mueller revealed, but said they were used in a "very, very minimal way."

Mr Mueller, in Senate testimony on Wednesday, acknowledged for the first time that the Federal Bureau of Investigation uses "very few" drones in a limited capacity for surveillance.  (more)

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Business Espionage - FBI Stops "Millions" from Flying Out of the U.S.

NJ - FBI agents arrested an engineer on Wednesday as he was preparing to return to India with trade secrets he allegedly stole from Becton, Dickinson and Co., the Franklin Lakes-based global medical technology company, authorities said.

B-D Patent from the late 1990's

Ketankumar "Ketan" Maniar, 36, an Indian national who lived in Mahwah until last week, had amassed a veritable tool kit for the manufacture of a new pen-like device for injecting drugs that was being developed by Becton Dickinson, authorities said...
 The stolen information was valued in the millions of dollars and could be used by Maniar to set up a new business or sold to a competitor...

If convicted, Maniar could face up to 10 years in prison and a $250,000 fine. (more)

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Obama: 'Nobody Is Listening to Your Telephone Calls'

President Barack Obama on Friday defended his administration's vast collection of emails and telephone records, saying the programs help prevent terrorist attacks while imposing only "modest encroachments" on people's privacy...

"When it comes to telephone calls, nobody is listening to your telephone calls," the president said. 

 Mr. Obama made clear that his own views of such intelligence-gathering efforts have evolved since he was a candidate for the presidency in 2008. He suggested he is now more comfortable with the "trade-offs" involved in guarding against terrorism. (more)

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Government Surveillance Ratchets Up

The Obama administration, resolving years of internal debate, is on the verge of backing a Federal Bureau of Investigation plan for a sweeping overhaul of surveillance laws that would make it easier to wiretap people who communicate using the Internet rather than by traditional phone services, according to officials familiar with the deliberations. (more)

Meanwhile...

Is the government recording and listening to your every phone call and probing every email for dangerous ideas? 

Probably—if certain insiders are to be believed. According to one former FBI agent, the US government may indeed keep a massive database where all domestic communications are recorded and stored....

From CNN interview transcripts:
 
(Ex-FBI) CLEMENTE: …We certainly have ways in national security investigations to find out exactly what was said in that conversation. 

(CNN) BURNETT: So they can actually get that? We can know what people are saying, that is incredible. 

(Ex-FBI) CLEMENTE: …Welcome to America. All of that stuff is being captured as we speak whether we know it or like it or not. (more)
And, where would you store all that chit-chat?

"The Utah Data Center, code-named Bumblehive, is the first Intelligence Community Comprehensive National Cyber-security Initiative (IC CNCI) data center designed to support the Intelligence Community's efforts to monitor, strengthen and protect the nation... NSA is the executive agent for the Office of the Director of National Intelligence (ODNI) and will be the lead agency at the center." (more)

The heavily fortified $2 billion center should be up and running in September 2013. Flowing through its servers and routers and stored in near-bottomless databases will be all forms of communication, including the complete contents of private emails, cell phone calls, and Google searches, as well as all sorts of personal data trails—parking receipts, travel itineraries, bookstore purchases, and other digital “pocket litter.” (more)

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Today: Hackers 2, FBI 0

A federal magistrate judge has denied (PDF) a request from the FBI to install sophisticated surveillance software to track someone suspected of attempting to conduct a “sizeable wire transfer from [John Doe’s] local bank [in Texas] to a foreign bank account.”

Back in March 2013, the FBI asked the judge to grant a month-long “Rule 41 search and seizure warrant” of a suspect’s computer “at premises unknown” as a way to find out more about these possible violations of “federal bank fraud, identity theft and computer security laws.” In an unusually public order published this week, Judge Stephen Smith slapped down the FBI on the grounds that the warrant request was overbroad and too invasive. In it, he gives a unique insight as to the government’s capabilities for sophisticated digital surveillance on potential targets. 

According to the judge’s description of the spyware, it sounds very similar to the RAT software that many miscreants use to spy on other Internet users without their knowledge. (more)

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Campaign Headquarters Bugged - FBI Investigating

Senate Minority Leader Mitch McConnell (R-Ky.) accused opponents Tuesday of bugging his headquarters and asked for an FBI investigation after a recording from an internal campaign meeting surfaced in a magazine report.

The 12-minute audiotape released by Mother Jones magazine reveals McConnell and his campaign staff at a Feb. 2 meeting lampooning actress Ashley Judd — then a potential Senate candidate — and comparing her to “a haystack of needles” because of her potential political liabilities. Judd has since decided not to run.



“We’ve always said the left will stop at nothing to attack Sen. McConnell, but Nixonian tactics to bug campaign headquarters is above and beyond,” campaign manager Jesse Benton said in a statement. (more)

UPDATE: "It is our understanding that the tape was not the product of a Watergate-style bugging operation. We cannot comment beyond that." – David Corn, Editor, Mother Jones (more)

Note: More than one person is heard speaking on the tapes (above is just an excerpt). Based on this, (and room echoes) the FBI will be able to figure out the location of the microphone. Hope everyone remembers where they were sitting.

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Apple's iMessage has DEA Tongue Tied

Encryption used in Apple's iMessage chat service has stymied attempts by federal drug enforcement agents to eavesdrop on suspects' conversations, an internal government document reveals.

Click to enlarge.

An internal Drug Enforcement Administration document seen by CNET discusses a February 2013 criminal investigation and warns that because of the use of encryption, "it is impossible to intercept iMessages between two Apple devices" even with a court order approved by a federal judge...

When Apple's iMessage was announced in mid-2011, Cupertino said it would use "secure end-to-end encryption." It quickly became the most popular encrypted chat program in history: Apple CEO Tim Cook said last fall that 300 billion messages have been sent so far, which are transmitted through the Internet rather than as more costly SMS messages carried by wireless providers. (more)

But... if messages are exchanged between an Apple device and a non-Apple device, they "can sometimes be intercepted, depending on where the intercept is placed." (more)

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Cell Phone Tracking v. Right to Privacy - To be Decided

A secretive technology which lets police locate and track people through their cellphones in alleged violation of the US constitution will be challenged in a potential landmark court case... 

The American Civil Liberties Union hopes to rein in the little known but widespread "stingray" surveillance devices which it claims violate the fourth amendment and the right to privacy.

The group will urge a federal court in Arizona to disregard evidence obtained by a stingray in what could be a test case for limiting the technology's use without a warrant. (more) (much more)

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Hello Federal! Give Me No Second Hand

Despite the pervasiveness of law enforcement surveillance of digital communication, the FBI still has a difficult time monitoring Gmail, Google Voice, and Dropbox in real time. 

But that may change soon, because the bureau says it has made gaining more powers to wiretap all forms of Internet conversation and cloud storage a “top priority” this year.

Last week, during a talk for the American Bar Association in Washington, D.C., FBI general counsel Andrew Weissmann discussed some of the pressing surveillance and national security issues facing the bureau. He gave a few updates on the FBI’s efforts to address what it calls the “going dark” problem—how the rise in popularity of email and social networks has stifled its ability to monitor communications as they are being transmitted. It’s no secret that under the Electronic Communications Privacy Act, the feds can easily obtain archive copies of emails. When it comes to spying on emails or Gchat in real time, however, it’s a different story. (more)

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Employee Bugs Boss - True Story

"Employee hid a recording device in supervisor's office. In addition, without authorization, Employee made copies of supervisor's negative comments about Employee that Employee located by conducting an  unauthorized search of the supervisor's office and briefcase. Employee provided the notes to lawyer in support of lawsuit against supervisor. Finally, Employee lied to investigators during the course of the administrative inquiry."

Think this can't happen to you?
Think again.
This case comes from the files of the FBI. 
Why? 
It was their employee. (more)

P.S. This report was labeled "NOT FOR PUBLIC DISSEMINATION" (oops, again)

Click to enlarge.

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Stingray - Clandestine Cellphone Tracking Tool - Fights On

The FBI calls it a “sensitive investigative technique” that it wants to keep secret. But newly released documents that shed light on the bureau’s use of a controversial cellphone tracking technology called the “Stingray” have prompted fresh questions over the legality of the spy tool.

Functioning as a so-called “cell-site simulator,” the Stingray is a sophisticated portable surveillance device. The equipment is designed to send out a powerful signal that covertly dupes phones within a specific area into hopping onto a fake network. 

The feds say they use them to target specific groups or individuals and help track the movements of suspects in real time, not to intercept communications. But by design Stingrays, sometimes called “IMSI catchers,” collaterally gather data from innocent bystanders’ phones and can interrupt phone users’ service—which critics say violates a federal communications law. The FBI has maintained that its legal footing here is firm. Now, though, internal documents obtained by the Electronic Privacy Information Center, a civil liberties group, reveal the bureau appears well aware its use of the snooping gear is in dubious territory...

It’s likely that in the months ahead, a few more interesting nuggets of information will emerge. The FBI has told EPIC that it holds a mammoth 25,000 pages of documents that relate to Stingray tools, about 6,000 of which are classified. The Feds have been drip-releasing the documents month by month, and so far there have been four batches containing between 27 and 184 pages each. Though most of the contents—even paragraphs showing how the FBI is interpreting the law—have been heavy-handedly redacted, several eyebrow-raising details have made it through the cut. (more) (Stingray explained)

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Florida Man Convicted in Wiretapping Scheme Targeting Celebrities

A Florida man who hacked into the personal e-mail accounts of more than 50 people associated with the entertainment industry—including actors Scarlett Johansson, Mila Kunis, and Renee Olstead—was sentenced this afternoon to 120 months in federal prison.

Christopher Chaney, 36, of Jacksonville, Florida, was sentenced by U.S. District Court Judge S. James Otero, who also ordered the defendant to pay $66,179 in restitution. At today’s hearing, Judge Otero said Chaney’s conduct demonstrated a “callous disregard to the victims”—particularly, two non-celebrity victims, each of whom was stalked by Chaney for more than 10 years. Judge Otero noted that with the increase in cybercrime, it is important to realize that extreme emotional distress can be as devastating as a physical injury.

Chaney has been in custody since March, when he pleaded guilty to nine felony counts, including wiretapping and unauthorized access to protected computers. (more)

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Feeb to Fed Xmas Files Secret Flash Sale

On Dec. 20, for the first time in its history, the Federal Bureau of Investigation will open its New York store at 26 Federal Plaza to federal employees for a limited time.

Selling a full line of FBI-branded clothing and merchandise—hats, t-shirts, sweatshirts, jackets, patches, pens and coins—the store will only be open a brief four hours, from 11 a.m. to 3 p.m. Some items are priced as low as $2, boasted an email sent earlier this week to federal staffers. The store is run by the FBI Recreation Association, a nonprofit headquartered in Washington D.C. Representatives did not return calls requesting comment about this flash sale opportunity. (more)   

Can't go? :(   
Shop here! :)

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FBI Issues Warning Regarding Android Malware

The FBI's Internet Crime Complaint Center has issued a warning alerting users about malware that targets the Android mobile operating system. 

The intelligence note from the IC3 was issued last week, and highlighted on Monday by Apple 2.0. It noted there are various forms of malware out in the wild that attack Android devices.

Two forms of malware cited byt he IC3 are Loozfon, which steals information from users, and FinFisher, which can give nefarious hackers control over a user's device. 

Loozfon can lure in victims by promising users a work-at-home opportunity in exchange for sending out an e-mail. Visiting a link in the e-mail will push Loozfon to the user's device, allowing the malware to steal contact details from the device's address book.

The FinFisher spyware highlighted by the IC3 allows for a mobile device to be remotely controlled and monitored from anywhere. FinFisher is installed by simply visiting a Web link or opening a text message that disguises itself as a system update. (more)

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