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May 2017

The Fallout from WannaCry By Stephen Bryen

International enforcement regarding cyber-intrusions is weak and in many cases nonexistent.

There was a joke going around thirty years ago, a not very good joke but like any two-edged sword it cut either way, that said that Israel was a “one disk” country. The meaning was that everyone copied stuff from their friends and didn’t pay for it.

At that time there was not much worry about computers or security, there were no smartphones (the Blackberry was just emerging), and the Internet was there but not the gargantuan edifice it is today.

But copying at that time was mostly a problem for the music industry, and as computer processors, storage and memory improved, it also became a worry for film producers who feared losing revenue. But still we were in early days.

Today much of the fraud in the computer business is illegally copied software. Big American companies, and probably big companies in Europe and some in Asia, are careful to use only licensed software because of the fear they might get caught pirating software from commercial vendors. But smaller companies are less inclined to worry about such things and, in some countries, stealing commercial software is quite common, even for major industries including banking.

That is why it is so interesting that Russia and China experienced a large number of ransomware attacks recently, part of the WannaCry exploit. In Russia, there are a large number of users (including probably some in government agencies) who use pirated software. One of the problems of pirated software is that you cannot easily keep the software up to date. That’s because in most cases to do so requires that you go with your registered and authenticated copy to the software manufacturer for updates. If yours is illegal, you don’t do that, or perhaps you try to figure out what the patch or update is, and install it yourself. By and large this left computers in Russia heavily exposed to the ransomware attack, which angered Vladimir Putin who, partly correctly, blamed NSA in the United States for his troubles.

McMaster and Commander Trump’s national security adviser takes on the Washington Post’s anonymous sources. James Freeman

Former government officials have been demanding anonymity from the Washington Post in order to discuss a meeting they did not attend at the White House. President Trump’s National Security Adviser, Gen. H.R. McMaster, who did attend the meeting, has been going on the record this week along with other attendees to knock down the resulting story. Yet much of the press still seems to credit the Post’s unnamed non-attendees.

Here’s the lede from the Post:

President Trump revealed highly classified information to the Russian foreign minister and ambassador in a White House meeting last week, according to current and former U.S. officials, who said Trump’s disclosures jeopardized a critical source of intelligence on the Islamic State.

On Monday evening Gen. McMaster said in response:

The story that came out tonight as reported is false. The President and the foreign minister reviewed a range of common threats to our two countries, including threats to civil aviation. At no time, at no time, were intelligence sources or methods discussed. And the president did not disclose any military operations that were not already publicly known. Two other senior officials who were present, including the Secretary of State, remember the meeting the same way and have said so. Their on-the-record accounts should outweigh those of anonymous sources. And I was in the room. It didn’t happen.

On Tuesday the national security adviser elaborated on his remarks and took questions from reporters. At his Tuesday appearance in the White House briefing room, Gen. McMaster called Mr. Trump’s discussion “wholly appropriate” and consistent with the normal sharing of information on terror threats that occurs in high-level meetings with representatives of foreign nations. He said he was not concerned by Mr. Trump’s disclosures and had not contacted any foreign governments about them.

The anonymous sources quoted by the Post, on the other hand, appear to have very deep concerns, and the Post says that some of them even know what was said at the meeting. But many of the story’s harshest critiques of the President come from people who were not only not at the meeting, but are no longer in government:

“It is all kind of shocking,” said a former senior U.S. official who is close to current administration officials. “Trump seems to be very reckless and doesn’t grasp the gravity of the things he’s dealing with, especially when it comes to intelligence and national security. And it’s all clouded because of this problem he has with Russia.”

Here’s another excerpt from the Post story specifically focused on the President’s discussion of a particular plot hatched by Islamic State:

“Everyone knows this stream is very sensitive, and the idea of sharing it at this level of granularity with the Russians is troubling,” said a former senior U.S. counterterrorism official who also worked closely with members of the Trump national security team. He and others spoke on the condition of anonymity, citing the sensitivity of the subject.

Now why are such subjects sensitive enough to require anonymity but not sensitive enough to avoid discussing with a Washington Post reporter? We normally think of current government employees needing to remain anonymous while leaking data to the press in order to keep their jobs, but it’s not immediately clear why all the former officials also deserve anonymity in this case. CONTINUE AT SITE

Loose Lips Sink Presidencies The Russian intel story shows the price of Trump’s lost credibility.

The state of the Trump Presidency has been perpetual turbulence, which seems to be how the principal likes it. The latest vortex is over Mr. Trump’s disclosure of sensitive intel to the Russians—and whatever the particulars of the incident, the danger is that Presidencies can withstand only so much turbulence before they come apart.

The Washington Post reported Monday night that in an Oval Office meeting last week Mr. Trump relayed high-level “code word” classified material obtained from an ally to Russian Foreign Minister Sergei Lavrov and Ambassador Sergey Kislyak. Cue another Washington meltdown. The President took to Twitter on Tuesday morning to defend himself, claiming an “absolute right” to disclose “facts pertaining to terrorism and airline flight safety.”

National Security Adviser H.R. McMaster put a finer point on it at a Tuesday press conference, though without denying key details. He said Mr. Trump’s disclosure was “wholly appropriate” and didn’t expose intelligence sources and methods.

Presidents sometimes share secrets with overseas leaders—even to adversaries such as the Soviets during the Cold War—if they conclude the benefits of showing what the U.S. knows will aid diplomacy or strategic interests. From media accounts and his tweets, Mr. Trump said something about Islamic State’s laptop bomb threat to airlines. He may well have been trying to convince the envoys of the menace ISIS poses to Russian lives and foreign-policy goals, like the Russian airliner that exploded over Sinai in 2015.

Then again, the Post story has Mr. Trump boasting about how great U.S. intelligence is and divulging the info on impulse to prove it. National security officials also asked the reporters to withhold specifics about the item in question, presumably because further disclosure could undermine efforts to counter the threat or endanger the lives of human assets.

Reports emerged on Tuesday that the ally that gathered the material is Israel, and the revelation could endanger this and other intelligence-sharing relationships. The Israelis may hold back if they think their dossiers will be laundered through the U.S. to the Russians and then get passed to their Iranian and Syrian clients, and other foreign services may lose confidence in the U.S.

Lt. Gen. McMaster said he disputed “the premise” of the Post story, which was that Mr. Trump had done something wrong or unbecoming. He confirmed that Mr. Trump made the decision ad hoc “in the context of the conversation,” not before the meeting. The problem is that even if the President’s conduct was “wholly appropriate,” the story’s premise is wholly plausible.