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CYBER WARS
FBI probing cyber theft at Citibank: WSJ

Obama names cybersecurity chief
US President Barack Obama has tapped former Bush administration adviser Howard Schmidt as his cybsersecurity coordinator, the White House announced Tuesday. "Howard will have the important responsibility of orchestrating the many important cybersecurity activities across the government," said John Brennan, Obama's assistant for homeland security and counterterrorism. "Howard will have regular access to the president and serve as a key member of his National Security Staff," Brennan said in a statement. "He will also work closely with his economic team to ensure that our cybersecurity efforts keep the nation secure and prosperous," he said. Schmidt, a cyber adviser in George W. Bush's administration, is president of the non-profit consortium Information Security Forum. In his new capacity, Schmidt will be based at the National Security Council, coordinating the federal government's cybsersecurity policy for both military and civilian agencies. An Air Force and FBI veteran, Schmidt also previously served as chief security officer at Microsoft. Citing his four decades of experience in government, business and law enforcement, Brennan called Schmidt "one of the world's leading authorities on computer security." The move comes as the Pentagon launches a new cyber command unit and the Department of Homeland Security seeks to boost the protection of civilian networks. "Cybersecurity matters to all of us. Protecting the Internet is critical to our national security, public safety and our personal privacy and civil liberties," Brennan said. "It's also vital to President Obama's efforts to strengthen our country, from the modernization of our health care system to the high-tech job creation central to our economic recovery."
by Staff Writers
 Washington (AFP) Dec 22, 2009
 The US Federal Bureau of Investigation is probing an attack by suspected Russian computer hackers on Citigroup Inc. that resulted in the theft of tens of millions of dollars, The Wall Street Journal reported Tuesday.

The newspaper, citing unidentified government officials, said the attack by hackers who appear to be linked to a Russian cyber gang targeted Citigroup's Citibank subsidiary.

It said the hackers also assaulted two other entities, at least one of them a US government agency.

The Citibank attack was detected over the summer, the Journal said, but investigators are looking into the possibility it may have occurred months or even a year earlier.

Citigroup flatly denied any such attack had taken place.

"We had no breach of the system and there were no losses, no customer losses, no bank losses," Joe Petro, managing director of Citigroup's Security and Investigative services, told the newspaper.

"Any allegation that the FBI is working a case at Citigroup involving tens of millions of losses is just not true," he said.

The Journal said US banks have generally been loath to disclose computer attacks for fear of scaring off customers.

The newspaper said the Citibank attack appeared to have been carried out by alumni of the "Russian Business Network," a Russian gang that has sold hacking tools and software for accessing US government systems.

The Journal said the hackers had used infected computers commanded by software called Black Energy, which was also used during Russia's brief 2008 war with Georgia to shut down Georgian government and bank websites.

Black Energy is usually used to block websites but can be upgraded to invade computer systems and snatch data, the Journal said.

The US Justice Department last month indicted alleged computer hackers from Estonia, Russia and Moldova in connection with a scheme that netted nine million dollars from cash dispensers.

They were accused of hacking into a computer network in November 2008 operated by Atlanta-based credit card processing company RBS WorldPay, part of the Royal Bank of Scotland.

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CYBER WARS
US, Russia begin talks on cyberspace security: report
 Washington (AFP) Dec 12, 2009
 The United States has begun talks with Russia and a UN arms control committee about strengthening Internet security and limiting military use of cyberspace, The New York Times reported Saturday. Citing officials familiar with the talks, the newspaper said US and Russian officials have different interpretations of the talks, but the mere fact that the Washington is participating represents ... read more






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