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Segal describes how cyberattacks can be launched by any country, individual, or private group with minimal resources in mere seconds, and why they have the potential to produce unintended and unimaginable problems for anyone with an Internet connection and an email account. State-backed hacking initiatives can shut down, sabotage trade strategies, steal intellectual property, sow economic chaos, and paralyze whole countries. Diplomats, who used to work behind closed doors of foreign ministries, must now respond with greater speed, as almost instantaneously they can reach, educate, or offend millions with just 140 characters.
Beginning with the Stuxnet virus launched by the United States at an Iranian nuclear facility in 2010 and continuing through to the most recent Sony hacking scandal, The Hacked World Order exposes how the Internet has ushered in a new era of geopolitical maneuvering and reveals the tremendous and terrifying implications for our economic livelihood, security, and personal identity.
Just as historians consider 1947 as the year that two clear sides in the Cold War emerged, we will look back at the year that stretches roughly from June 2012 to June 2013 as Year Zero in the battle over cyberspace. It was by no means the first year to witness an important cyberattack or massive data breach; those had arguably happened several times before. In the 1990s the United States used cyber weapons against Serbia, and in 2007 hackers stole credit and debit card information from at least 45 million shoppers at T.J. Maxx and Marshalls. In 2008 hackers, suspected to be working with the Russian intelligence services, breached the Pentagon's classified networks. But it was in 2012 that nation-states around the world visibly reasserted their control over the flow of data and information in search of power, wealth, and influence, finally laying to rest the already battered myth of cyberspace as a digital utopia, free of conventional geopolitics. The assault on this vision was comprehensive, global, and persistent.
Stuxnet's complexity put it out of the reach of individual hackers and pointed to the involvement of a nation-state intending to do physical damage to a target. This parentage is Stuxnet's second noteworthy characteristic, and it represented a strategic sea change. As Michael V. Hayden, former chief of the Central Intelligence Agency (CIA) put it, \"Somebody crossed the Rubicon.\" Before Stuxnet, computer code had served primarily to steal or destroy data on other computers; now it was causing equipment to malfunction. It was creating physical outcomes. Yet, unlike with conventional or even nuclear weapons, the effects and rules of cyber weapons were largely unknown. There was no understanding of the consequences Stuxnet might unleash, though there was fear that the same type of weapons might eventually target the United States. \"If you are in the glass house, you should not be the one initiating throwing rocks at each other,\" Gregory Rattray, now an information security specialist at JPMorgan Chase, said at a 2012 conference. \"We will have rocks come back at us.\"
The Shamoon attack on Saudi Arabia seriously spooked the US government. Secretary of Defense Leon Panetta called it \"a significant escalation of the cyber threat.\" In a speech in October 2012 at the Intrepid Sea, Air, and Space Museum, Panetta warned a group of business executives of a potential \"cyber Pearl Harbor.\" Computer hackers could gain control of \"critical switches,\" he cautioned, and \"derail passenger trains, or even more dangerous, derail trains loaded with lethal chemicals. They could contaminate the water supply in major cities, or shut down the power grid across large parts of the country.\" President Barack Obama echoed this threat in his State of the Union address, stating, \"Our enemies are . . . seeking the ability to sabotage our power grid, our financial institutions, and our air traffic control systems.\"
Even as Iran and the United States were trading blows in cyberspace, China-based hackers were continuing a massive cyber theft campaign against technology firms in the United States, Japan, and Europe. For years, Chinese hackers had raided defense contractors and the Pentagon, stealing secrets from dozens of weapons programs, including the Patriot missile system, the F-35 Joint Strike Fighter, and the US Navy's new littoral combat ship. They gradually expanded their attention to technology companies, financial institutions, law firms, think tanks, and the media. In July 2012 General Alexander called these and other economic espionage cyberattacks on American companies the \"greatest transfer of wealth in history\" and estimated that American companies had lost $250 billion in stolen information and another $114 billion in related expenses.
These e-mails, probably from China-based hackers, are known as spear-phishing attacks. E-mails are made to look like they come from someone you know (hackers may study job titles on your company's website or your social networks on Facebook, LinkedIn, or Twitter) and craft a subject line designed to be of interest to you. The e-mails often arrive in the morning, before you have had your first cup of coffee. Attackers may send one just before a long weekend, knowing the recipient will want to get any work out of the way before leaving the office. Opening an attachment or clicking on a link downloads software that allows attackers to gain control of your computer. They then gradually expand their access and move into different computers and networks, sending files back to computers in China or elsewhere. In some instances, the hackers use the computer's microphone and camera to record entire meetings.
Chinese hackers used this type of attack against the New York Times sometime at the end of 2012 as the paper's journalists were preparing a story on the massive wealth allegedly accumulated by the family of former prime minister Wen Jiabao. The hackers targeted reporters' passwords and accounts. Soon after, Bloomberg, which published a similar story on the wealth of the family of Xi Jinping, China's top leader, admitted that it also had been hacked. In February 2013, Mandiant, a private security company formed by former US Air Force officer Kevin Mandia, published a report naming Unit 61398 of the 3rd Department of the People's Liberation Army as responsible for the attacks on the New York Times and others. In attributing the digital assault, a private company had acted like a national intelligence agency.
NSA reportedly spied on adversaries and friends alike, tracking Somali terrorists and breaking into Chinese networks, but also hacking the European Union's offices in New York, Washington, DC, and Brussels, bugging the computer hard drives of the Indian embassies in Washington and New York, and listening to the calls of Brazilian president Dilma Rousseff, German chancellor Angela Merkel, and at least thirty other world leaders.
The twenty-firstcentury hacked world order is markedly more complex than that of the burgeoning Cold War in 1947. Then, mountains, rivers, and walls divided friends from enemies. Physical space matters much less in the cyber age, when attackers can act from anywhere with access to a modem or a smartphone. Hackers in Russia can use the Internet to attack neighboring Estonia or the United States nearly 5,000 miles away. For policymakers and the public shortly after the end of World War II, conventional power was relatively easy to chart as a share of world gross domestic product (GDP) and military spending. Now there is an uncertainty about how to measure cyber power. Does economic power stem from producing software, hardware, and content, or can a country specialize in one high-value area Unlike long-range bombers and missiles, cyber weapons cannot be counted and it is unclear whether it is better to have a large corps of cyber troops or, given the importance of creativity and skill, a smaller number of elite hackers. 781b155fdc