February 2020 – Page 9 – Law Enforcement, Military, and Terrorism News

Chinese Military Personnel Charged with Computer Fraud, Economic Espionage and Wire Fraud for Hacking into Credit Reporting Agency Equifax

A federal grand jury in Atlanta returned an indictment last week charging four members of the Chinese People’s Liberation Army (PLA) with hacking into the computer systems of the credit reporting agency Equifax and stealing Americans’ personal data and Equifax’s valuable trade secrets.

Indictment Alleges Four Members of China’s People’s Liberation Army Engaged in a Three-Month Long Campaign to Steal Sensitive Personal Information of Nearly 150 Million Americans

The nine-count indictment alleges that Wu Zhiyong (吴志勇), Wang Qian (王乾), Xu Ke (许可) and Liu Lei (刘磊) were members of the PLA’s 54^th Research Institute, a component of the Chinese military. They allegedly conspired with each other to hack into Equifax’s computer networks, maintain unauthorized access to those computers, and steal sensitive, personally identifiable information of approximately 145 million American victims.

“This was a deliberate and sweeping intrusion into the private information of the American people,” said Attorney General William P. Barr, who made the announcement. “Today, we hold PLA hackers accountable for their criminal actions, and we remind the Chinese government that we have the capability to remove the Internet’s cloak of anonymity and find the hackers that nation repeatedly deploys against us. Unfortunately, the Equifax hack fits a disturbing and unacceptable pattern of state-sponsored computer intrusions and thefts by China and its citizens that have targeted personally identifiable information, trade secrets, and other confidential information.”

According to the indictment, the defendants exploited a vulnerability in the Apache Struts Web Framework software used by Equifax’s online dispute portal.

They used this access to conduct reconnaissance of Equifax’s online dispute portal and to obtain login credentials that could be used to further navigate Equifax’s network.

The defendants spent several weeks running queries to identify Equifax’s database structure and searching for sensitive, personally identifiable information within Equifax’s system. Once they accessed files of interest, the conspirators then stored the stolen information in temporary output files, compressed and divided the files, and ultimately were able to download and exfiltrate the data from Equifax’s network to computers outside the United States. In total, the attackers ran approximately 9,000 queries on Equifax’s system, obtaining names, birth dates and social security numbers for nearly half of all American citizens.

The indictment also charges the defendants with stealing trade secret information, namely Equifax’s data compilations and database designs. “In short, this was an organized and remarkably brazen criminal heist of sensitive information of nearly half of all Americans, as well as the hard work and intellectual property of an American company, by a unit of the Chinese military,” said Barr.

The defendants took steps to evade detection throughout the intrusion, as alleged in the indictment. They routed traffic through approximately 34 servers located in nearly 20 countries to obfuscate their true location, used encrypted communication channels within Equifax’s network to blend in with normal network activity, and deleted compressed files and wiped log files on a daily basis in an effort to eliminate records of their activity.

“Today’s announcement of these indictments further highlights our commitment to imposing consequences on cybercriminals no matter who they are, where they are, or what country’s uniform they wear,” said FBI Deputy Director David Bowdich. “The size and scope of this investigation — affecting nearly half of the U.S. population, demonstrates the importance of the FBI’s mission and our enduring partnerships with the Justice Department and the U.S. Attorney’s Office. This is not the end of our investigation; to all who seek to disrupt the safety, security and confidence of the global citizenry in this digitally connected world, this is a day of reckoning.”

The defendants are charged with three counts of conspiracy to commit computer fraud, conspiracy to commit economic espionage, and conspiracy to commit wire fraud. The defendants are also charged with two counts of unauthorized access and intentional damage to a protected computer, one count of economic espionage, and three counts of wire fraud.

The investigation was conducted jointly by the U.S. Attorney’s Office for the Northern District of Georgia, the Criminal and National Security Divisions of the Department of Justice, and the FBI’s Atlanta Field Office. The FBI’s Cyber Division also provided support. Equifax cooperated fully and provided valuable assistance in the investigation.

Assistant U.S. Attorneys Nathan Kitchens, Samir Kaushal, and Thomas Krepp of the Northern District of Georgia; Senior Counsel Benjamin Fitzpatrick of the Criminal Division’s Computer Crime and Intellectual Property Section; and Trial Attorney Scott McCulloch of the National Security Division’s Counterintelligence and Export Control Section are prosecuting this case. Attorneys with the Office of International Affairs provided critical assistance in obtaining evidence from overseas.

The details contained in the charging document are allegations. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Justice.gov (February, 2020) Chinese Military Personnel Charged with Computer Fraud, Economic Espionage and Wire Fraud for Hacking into Credit Reporting Agency Equifax

Perdue, Loeffler Push Fort Benning As Home Of New Army Corps Headquarters

U.S. Senator David Perdue (R-GA), a member of the Senate Armed Services Committee, and U.S. Senator Kelly Loeffler (R-GA) are urging the U.S. Army to select Fort Benning as the Army’s fourth corps headquarters.

“Fort Benning is a crown jewel of the Army uniquely qualified to host the new corps headquarters.”

The Army recently announced Fort Benning as one of three finalists to host the new headquarters, which is needed to fulfill requirements of the National Defense Strategy.

In a letter to Secretary of the Army Ryan McCarthy, Perdue and Loeffler highlighted Fort Benning’s unmatched training, support, and command facilities and its ability to quickly activate the new headquarters.

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“We commend your decision to realign forces under a new corps headquarters in support of the National Defense Strategy and strongly recommend that you consider Fort Benning for its basing. Fort Benning is a crown jewel of the Army uniquely qualified to host the new corps headquarters,” the Senators said.

“Fort Benning stands ready to meet all facility, deployment support infrastructure, and community support requirements needed for activation in October 2020. As the home to the Army’s Maneuver Center of Excellence, Fort Benning provides unmatched training, support, and command facilities. It includes 26 million square feet of facilities and 102,000 acres of maneuver training areas capable of supporting all manner of maneuver operations, tactics, and training,” Perdue and Loeffler said.

Fort Benning Army post straddles the Alabama and Georgia border near Columbus, Georgia and supports more than 120,000 active-duty military, family members, reserve component soldiers, retirees, and civilian employees on a daily basis.

View the full text of the letter here.

Perdue.senate.gov (February, 2020) Perdue, Loeffler Push Fort Benning As Home Of New Army Corps Headquarters

Palm Bay Woman Sentenced To 30 Years For Sexually Exploiting Children

U.S. District Judge Roy B. Dalton, Jr. has sentenced Rose Beth Litzky (33, Palm Bay) to 30 years in federal prison for conspiring to sexually exploit children, sexually exploiting children, and possessing child pornography.

A federal jury had found Litzky guilty on July 29, 2019.

According to the evidence presented at trial, between 2014 and 2016, Litzky conspired with her boyfriend, Roberto Oquendo, to sexually exploit two young children in her custody and care.

Litzky, who lived in Florida, caused the children to engage in sexually explicit conduct while Oquendo watched using a video and messaging app from his residence in Virginia.

Oquendo created hundreds of screenshots of the explicit visual depictions and transported them to Brevard County, where law enforcement found them on his cell phone.

During an interview with law enforcement officers, Litzky also admitted to producing hundreds of sexually explicit pictures of the children and texting them to Oquendo for his sexual gratification. Law enforcement searched Litzky’s phone and found a sexually explicit image of one of the children, who was two years old at the time the picture was taken.

On August 26, 2019, U.S. District Judge Roy B. Dalton, Jr. sentenced Oquendo to 50 years in federal prison for his role in the offenses.

“Child pornography is a despicable crime so I commend the efforts of the agents and federal prosecutors who are relentless in their work to ensure children are protected from these sexual predators,” said Special Agent in Charge of the FBI Tampa Division Michael McPherson.

“I am so very proud of these agents who are devoted to protecting children by making sure the evil men and women who hurt them are brought to justice,” stated Brevard County Sheriff Wayne Ivey. “These cases are an example of how cooperation between agencies keeps our children safe. I want to thank the U.S. Attorney’s Office for prosecuting these cases and the Federal Bureau of Investigation for all of their support in fighting the exploitation of children.”

This case was investigated by the Federal Bureau of Investigation and the Brevard County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Ilianys River Miranda and Karen L. Gable.

This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims.

For more information about Project Safe Childhood, please visit www.justice.gov/psc.

Justice.gov (February, 2020) Palm Bay Woman Sentenced To 30 Years for Sexually Exploiting Children

Border Patrol Agents Arrest 14 in a Failed Smuggling Attempt

U.S. Border Patrol agents assigned to the Eagle Pass Station arrested a 31-year-old United States citizen for facilitating the smuggling of 13 undocumented aliens on Feb. 6.

DEL RIO, Texas – U.S. Border Patrol agents assigned to the Eagle Pass Station arrested a 31-year-old United States citizen for facilitating the smuggling of 13 undocumented aliens on Feb. 6.

“Unscrupulous human smugglers expose people to dangerous and inhumane conditions,” said Del Rio Sector Chief Patrol Agent Raul L. Ortiz. “For them, it is all about monetary gain with no regard for the physical and mental well-being of the person being smuggled.”

On Feb. 5, agents responded to a call of possible illegal aliens at a local motel. Upon arrival agents observed suspicious activity and questioned 13 adult individuals as to their citizenship. After further investigation, it was determined that the nine Honduran nationals, of which one was an unaccompanied juvenile, and four Mexican nationals were illegally present in the U.S. The subjects had been staying at the local motel waiting to be smuggled further into the U.S.

On Feb. 6, a 31-year-old woman was identified as the suspected facilitator of the smuggling operation and was arrested by federal agents. The case was turned over to Homeland Security Investigations.

The suspected facilitator faces felony charges under 8 USC 1324, alien smuggling, and if convicted could receive up to 10 years in prison. All illegal aliens are processed in accordance with U.S. Customs and Border Protection guidelines.

To report suspicious activity call the Del Rio Sector’s toll free number at 1-866-511-8727.

CBP.gov (February, 2020) Border Patrol Agents Arrest 14 in a Failed Smuggling Attempt

Confronting the China Threat

China is threatening the U.S. economy—and national security—with its relentless efforts to steal sensitive technology and proprietary information from U.S. companies, academic institutions, and other organizations, FBI Director Christopher Wray said

Director Wray Says Whole-of-Society Response is Needed to Protect U.S. Economic and National Security

Wray described the threat from China as “diverse” and “multi-layered.” He noted that the Chinese government exploits the openness of the American economy and society.

“They’ve pioneered an expansive approach to stealing innovation through a wide range of actors,” Wray said during opening remarks at the half-day Department of Justice China Initiative Conference in Washington, D.C.

Wray told the audience that China is targeting everything from agricultural techniques to medical devices in its efforts to get ahead economically. While this is sometimes done legally, such as through company acquisitions, China often takes illegal approaches, including cyber intrusions and corporate espionage.

“They’ve shown that they’re willing to steal their way up the economic ladder at our expense,” he said.

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The FBI is using traditional law enforcement techniques as well as its intelligence capabilities to combat these threats. He said the FBI currently has about 1,000 investigations into Chinese technology theft.

Just last month, a Harvard University professor was charged with lying about his contractual arrangement with China.

Wray also called for a whole-of-society response to these threats. He urged U.S. companies to carefully consider their supply lines and whether and how they do business with Chinese companies. While a partnership with a Chinese company may seem profitable today, a U.S. company may find themselves losing their intellectual property in the long run.

Additionally, U.S. universities should work to protect their foreign students from coercion from foreign governments, Wray said.

Wray noted, however, that these threats do not mean the U.S. shouldn’t welcome Chinese students or visitors.

“What it does mean is that when China violates our criminal laws and well-established international norms, we are not going to tolerate it, much less enable it,” he said. “The Department of Justice and the FBI are going to hold people accountable for that and protect our nation’s innovation and ideas.”

FBI.gov (February, 2020) Confronting the China Threat