Friday, November 23, 2012

Zombie Bullets: US ammo producers cash in on Zombie Apocalypse fears

http://rt.com/usa/news/zombie-bullets-high-demand-360/     

Zombie Bullets: US ammo producers cash in on Zombie Apocalypse fears

Published: 08 June, 2012, 17:00


AFP Photo/Julio Cesar Aguilar
AFP Photo/Julio Cesar Aguilar
A weapon against zombies is being sold across the US after a series of cannibal attacks shocked the country. The largest independent producer of bullets in the world says their Zombie Max ammunition is a response to the flesh-eating crimes.
Hornady Manufacturing Company, an American maker of ammunition and hand-loading components has decided to cash in on current zombie terror.
Zombie Bullets are designed for those who want to be ready and fully-equipped for what the company calls “a Zombie Apocalypse.”
Zombie fascination is also bouncing around the internet, recently becoming the third most-popular search term on Google. Conspiracies and expectation of the Zombie Apocalypse have even forced the US Center for Disease Control to address the American public and deny the threat.
But the move has obviously failed to calm the situation down.
Hornandy say their bullets are sure to kill for good.
“Be PREPARED – supply yourself for the Zombie Apocalypse with Zombie Max ammunition from Hornady! Loaded with PROVEN Z-Max bullets… MAKE DEAD PERMANENT!” – says the promotion on the company’s website.
Image from wvoutpost.com
Image from wvoutpost.com
­Company spokesman Everett Deger told WWJ Newsradio 950: “We decided just to have some fun with a marketing plan that would allow us to create some ammunition designed for that … fictional world.”
He also added that Zombie Max and Z-Max bullets are Hornady’s most successful products.
But it’s not just weapons. Principles of theoretical defense against zombies are also proving popular in the US right now. A Zombie Apocalypse Survival Class is being offered in the city of Conover.  About a dozen people paid between $50 and $75 to take the first lesson Thursday night, WCNC.com reports.
"We focus on self-defense, firearms and how to handle apocalyptic situations. It could be anything from a nuclear bomb to a hurricane to an enemy invasion," says Jack Simons, Jr., the course creator.
He added that it is "Basically, a survival course with a zombie theme."
A recent outbreak of bizarre attacks triggered zombie conspiracies across the US. Some blame drugs, others believe it’s a psychiatric issue, but macabre zombie-style crimes have put the country on undead alert.  
Last week, a man in Miami attacked and ate the face of his victim – a homeless man, and was shot dead by police. The victim survived, but doctors are having a hard time piecing his face together. Then, an engineering student in Maryland allegedly stabbed a man to death and ate his heart and brain. In Canada, police are on the hunt for a porn actor who reportedly slaughtered, dismembered, sexually violated the body and then ate his victim.
The zombie paranoia inspired two young men in Miami to stage a prank:  video shot by an operator hiding in a parked car shows a young man wearing a blood-stained shirt. The“zombie” approaches passers-by with a roar and attacks them from behind. Vividly recalling recent bloody events in the city, most locals run away in a panic. The video quickly became an online hit.
Image from stephenhunt.net
Image from stephenhunt.net

White House refuses to reveal ties with Monsanto

http://rt.com/usa/news/white-house-monsanto-peer-991/         reds / blues = iceberg  -- dead ahead !!!

White House refuses to reveal ties with Monsanto

Published: 23 February, 2012, 00:09
Volunteer reapers ("Faucheurs volontaires"), beekeepers and anti-GMO activists put a placard in front of the Regional Direction of Agriculture on February 21, 2012 in Toulouse (AFP Photo / Remy Gabalda)
Volunteer reapers ("Faucheurs volontaires"), beekeepers and anti-GMO activists put a placard in front of the Regional Direction of Agriculture on February 21, 2012 in Toulouse (AFP Photo / Remy Gabalda)
Despite requests made under the Freedom of Information Act for correspondence out of the White House, the Obama administration is refusing to comply with calls to disclose discussions with Monsanto-linked lobbyists.
The US-based non-profit group Public Employees for Environmental Responsibility (PEER) is demanding that the White House comply with a FOIA request for information that might link the Obama administration with lobbyists tied to the Monsanto corporation. Monsanto, an agricultural biotech company that rakes in billions each year, has become the enemy of independent farmers in recent years after the corporation has sued hundreds of small-time growers and, in many cases, purchased farms that are unable to compete in a court of law. As Monsanto’s profits grow and the group comes close to monopolizing the market for American agriculture, the company has at the same time thrived due its use of controversial genetically-engineered seeds.
Three-hundred thousands organic farmers across America are currently trying to take Monsanto to court to keep the corporation from continuing its war on independent growers. As a case is composed, the PEER group suspects that the White House’s refusal to comply with the FOIA request could be because Monsanto has some powerful friends on Pennsylvania Avenue.
Particularly, PEER is trying to pry correspondence that came into the inbox of a White House policy analyst from a lobbyist with the Biotechnology Industry Organization (BIO), which represents Monsanto and other manufacturers of genetically-engineered seeds. The White House says that disclosing the full details of the email could give competing companies an advantage as lobbying secrets are unearthed for the world, but PEER thinks the truth is much worse than that.
"We suspect the reason an industry lobbyist so cavalierly shared strategy is that the White House is part of that strategy," PEER staff counsel Kathryn Douglass tells the Truthout website. "The White House's legal posture is as credible as claiming Coca Cola's secret formula was 'inadvertently' left in a duffel bag at the bus station."
Michael Taylor, a former attorney for the US Department of Agriculture and lobbyist for Monsanto, was recently appointed to a federal role as the deputy commissioner for foods at the United States Food and Drug Administration (FDA). Since then, the FDA shot down requests from consumer protection groups to label genetically modified products as such. With a White House-Monsanto connection already established with the appointment of Taylor, PEER and others are interested in what other ties could exist between the two.
The inquiry from PEER stems from an earlier email obtained in which biotech lobbyist Adrianne Massey confronts a White House official with regards to if and how the administration is dealing with a lawsuit PEER had filed. In that instance, PEER had fought and won to keep genetically-engineered crops from being planted in wildlife refuges. PEER is now suing the White House for the rest of that correspondence and other related emails.

Stratfor emails reveal secret, widespread TrapWire surveillance system

http://rt.com/usa/news/stratfor-trapwire-abr

Stratfor emails reveal secret, widespread TrapWire surveillance system

Published: 10 August, 2012, 11:23
Edited: 11 August, 2012, 01:35
AFP Photo / Valery Hache
AFP Photo / Valery Hache
Former senior intelligence officials have created a detailed surveillance system more accurate than modern facial recognition technology — and have installed it across the US under the radar of most Americans, according to emails hacked by Anonymous.
Every few seconds, data picked up at surveillance points in major cities and landmarks across the United States are recorded digitally on the spot, then encrypted and instantaneously delivered to a fortified central database center at an undisclosed location to be aggregated with other intelligence. It’s part of a program called TrapWire and it's the brainchild of the Abraxas, a Northern Virginia company staffed with elite from America’s intelligence community. The employee roster at Arbaxas reads like a who’s who of agents once with the Pentagon, CIA and other government entities according to their public LinkedIn profiles, and the corporation's ties are assumed to go deeper than even documented.
The details on Abraxas and, to an even greater extent TrapWire, are scarce, however, and not without reason. For a program touted as a tool to thwart terrorism and monitor activity meant to be under wraps, its understandable that Abraxas would want the program’s public presence to be relatively limited. But thanks to last year’s hack of the Strategic Forecasting intelligence agency, or Stratfor, all of that is quickly changing.
Hacktivists aligned with the loose-knit Anonymous collective took credit for hacking Stratfor on Christmas Eve, 2011, in turn collecting what they claimed to be more than five million emails from within the company. WikiLeaks began releasing those emails as the Global Intelligence Files (GIF) earlier this year and, of those, several discussing the implementing of TrapWire in public spaces across the country were circulated on the Web this week after security researcher Justin Ferguson brought attention to the matter. At the same time, however, WikiLeaks was relentlessly assaulted by a barrage of distributed denial-of-service (DDoS) attacks, crippling the whistleblower site and its mirrors, significantly cutting short the number of people who would otherwise have unfettered access to the emails.
On Wednesday, an administrator for the WikiLeaks Twitter account wrote that the site suspected that the motivation for the attacks could be that particularly sensitive Stratfor emails were about to be exposed. A hacker group called AntiLeaks soon after took credit for the assaults on WikiLeaks and mirrors of their content, equating the offensive as a protest against editor Julian Assange, “the head of a new breed of terrorist.” As those Stratfor files on TrapWire make their rounds online, though, talk of terrorism is only just beginning.
Mr. Ferguson and others have mirrored what are believed to be most recently-released Global Intelligence Files on external sites, but the original documents uploaded to WikiLeaks have been at times unavailable this week due to the continuing DDoS attacks. Late Thursday and early Friday this week, the GIF mirrors continues to go offline due to what is presumably more DDoS assaults. Australian activist Asher Wolf wrote on Twitter that the DDoS attacks flooding the servers of WikiLeaks supporter sites were reported to be dropping upwards of 40 gigabits of traffic per second. On Friday, WikiLeaks tweeted that their own site was sustaining attacks of 10 Gb/second, adding, "Whoever is running it controls thousands of machines or is able to simulate them."
According to a press release (pdf) dated June 6, 2012, TrapWire is “designed to provide a simple yet powerful means of collecting and recording suspicious activity reports.” A system of interconnected nodes spot anything considered suspect and then input it into the system to be "analyzed and compared with data entered from other areas within a network for the purpose of identifying patterns of behavior that are indicative of pre-attack planning.”
In a 2009 email included in the Anonymous leak, Stratfor Vice President for Intelligence Fred Burton is alleged to write, “TrapWire is a technology solution predicated upon behavior patterns in red zones to identify surveillance. It helps you connect the dots over time and distance.” Burton formerly served with the US Diplomatic Security Service, and Abraxas’ staff includes other security experts with experience in and out of the Armed Forces.
What is believed to be a partnering agreement included in the Stratfor files from August 13, 2009 indicates that they signed a contract with Abraxas to provide them with analysis and reports of their TrapWire system (pdf).
“Suspicious activity reports from all facilities on the TrapWire network are aggregated in a central database and run through a rules engine that searches for patterns indicative of terrorist surveillance operations and other attack preparations,” Crime and Justice International magazine explains in a 2006 article on the program, one of the few publically circulated on the Abraxas product (pdf). “Any patterns detected – links among individuals, vehicles or activities – will be reported back to each affected facility. This information can also be shared with law enforcement organizations, enabling them to begin investigations into the suspected surveillance cell.”
In a 2005 interview with The Entrepreneur Center, Abraxas founder Richard “Hollis” Helms said his signature product “can collect information about people and vehicles that is more accurate than facial recognition, draw patterns, and do threat assessments of areas that may be under observation from terrorists.” He calls it “a proprietary technology designed to protect critical national infrastructure from a terrorist attack by detecting the pre-attack activities of the terrorist and enabling law enforcement to investigate and engage the terrorist long before an attack is executed,” and that, “The beauty of it is that we can protect an infinite number of facilities just as efficiently as we can one and we push information out to local law authorities automatically.”
An internal email from early 2011 included in the Global Intelligence Files has Stratfor’s Burton allegedly saying the program can be used to “[walk] back and track the suspects from the get go w/facial recognition software.”
Since its inception, TrapWire has been implemented in most major American cities at selected high value targets (HVTs) and has appeared abroad as well. The iWatch monitoring system adopted by the Los Angeles Police Department (pdf) works in conjunction with TrapWire, as does the District of Columbia and the "See Something, Say Something" program conducted by law enforcement in New York City, which had 500 surveillance cameras linked to the system in 2010. Private properties including Las Vegas, Nevada casinos have subscribed to the system. The State of Texas reportedly spent half a million dollars with an additional annual licensing fee of $150,000 to employ TrapWire, and the Pentagon and other military facilities have allegedly signed on as well.
In one email from 2010 leaked by Anonymous, Stratfor’s Fred Burton allegedly writes, “God Bless America. Now they have EVERY major HVT in CONUS, the UK, Canada, Vegas, Los Angeles, NYC as clients.” Files on USASpending.gov reveal that the US Department of Homeland Security and Department of Defense together awarded Abraxas and TrapWire more than one million dollars in only the past eleven months.
News of the widespread and largely secretive installation of TrapWire comes amidst a federal witch-hunt to crack down on leaks escaping Washington and at attempt to prosecute whistleblowers. Thomas Drake, a former agent with the NSA, has recently spoken openly about the government’s Trailblazer Project that was used to monitor private communication, and was charged under the Espionage Act for coming forth. Separately, former NSA tech director William Binney and others once with the agency have made claims in recent weeks that the feds have dossiers on every American, an allegation NSA Chief Keith Alexander dismissed during a speech at Def-Con last month in Vegas.
axas-wikileaks-313/             

Monsanto insurance: USDA tells farmers to pay for avoiding troubles with agro-giant

http://rt.com/usa/news/monsanto-insurance-ge-contamination-272/          

Monsanto insurance: USDA tells farmers to pay for avoiding troubles with agro-giant

Published: 22 November, 2012, 00:09
TAGS:
USA, Agriculture
(Reuters / Robert Pratta)
(Reuters / Robert Pratta)
The United State Department of Agriculture has finalized a report to address concerns from farmers who fear they’ll be next on an ever-expanding list of defendants sued by biotech giants Monsanto, but those worries aren’t about to end.
The Monsanto Company dominates more than just grow fields across the US, as evident in their stellar track record of taking small-time farmers to court and winning cases, an occurrence that Think Progress acknowledges happens roughly a dozen times a year. Time and time again, Monsanto’s patented, lab-made genetically engineered seeds are sold to one farmer, only for Mother Nature to move the crop onto neighboring fields with the help of a bit of wind. Just as often, of course, Monsanto’s team of high-paid litigators take the little guys to court, only to triumph thanks to a legal counsel that collects around $10 million a year just to take other farmers to court.
With Monsanto-led lawsuits all too common, the USDA was tasked with putting together a panel — the Advisory Committee on Biotechnology and 21st Century Agriculture, or AC21 — to analyze, among other items, “What types of compensation mechanisms, if any, would be appropriate to address economic losses1 by farmers in which the value of their crops is reduced by unintended presence of genetically engineered(GE) material(s)?”
The AC21 panel released their findings in a report [PDF] entitled ‘Enhancing Coexistence’ that was sent to the secretary of agriculture this week. In it, however, they have little to say to the farmers who are likely to be brought before a judge while Monsanto and other biotech kings come out on top.
According to the AC21 group, the best maneuver for any Monsanto foe to take right now is to simply buy insurance, suggesting that the top guns will be given the go-ahead to continue with their contested habit of near endless litigation, a practice that has a tendency to leave the little guys bankrupt and out of business — only to be bought up by the billion-dollar Monsanto corporation after their bills can’t be paid.
“In discussions on potential compensation mechanisms,” the panel writes, “the AC21 considered three types of potential mechanisms: (1) a compensation fund, which might be funded by technology providers, by farmers, or by the entire food and feed production chain; (2) a crop insurance-type mechanism, which would likely involve both public financing and farmer choice to purchase the insurance; and (3) a risk retention group, which would essentially be a self-insurance tool that could be purchased by those farmers at risk of economic losses (analogous to extant insurance mechanisms for industries like the trucking industry, private campgrounds, etc.).”
The AC21 discussed potential impacts on trade relations upon adoption of any of the three potential compensation mechanisms. The entire gamut of potential views was expressed: some members felt that establishing a compensation mechanism would send a signal to purchasers of US organic and non-GE products that there are problems in how the US produces those products, some expressed the opinion that effects would be neutral, and some felt that it would be reassuring to our trading partners in GE-sensitive markets that steps are being taken to ensure containment. All members felt, however, that if a compensation mechanism were to be instituted, that attention needed to be given to potential impacts on trade.”
In their recommendations, the panel suggests, “If the Secretary, in considering the loss data, determines that the situation warrants development of a compensation mechanism to help address such losses, the Secretary should implement such a mechanism based on a crop insurance model.”
Additionally, no real recommendations seem to be presented to farmers regularly targeted by biotech companies in court other than to invest in some solid insurance. In a statement issued Wednesday from The National Organic Coalition (NOC), the group condemns the USDA and its AC21 panel for allegedly putting little work into alleviating a big problem destroying America’s agriculturists.
“Of particular concern in the report is the recommendation that organic and non-GE conventional farmers pay for crop insurance or self-insure themselves against unwanted GE contamination,” the group writes. “NOC strongly asserts that this proposal allows USDA and the agricultural biotechnology industry to abdicate responsibility for preventing GE contamination, while making the victim of GE pollution pay for damages resulting from transgenic contamination.
“This is a completely wrong approach to tackling the GE contamination problem,” says Liana Hoodes, NOC’s executive director. “At the bare minimum, USDA must stop approving additional GE crops, and prevent GE contamination by mandating pollution prevention measures, as well as make transgenic polluters, including GE technology owners, pay for their contamination.”
Andrew Kimbrell, executive director at Center for Food Safety and a NOC member, adds that the AC21’s findings are an “ill-conceived solution of penalizing the victim is fundamentally unjust and fails to address the root cause of the problem – transgenic contamination.”
“The AC21 report takes responsibility for GE contamination prevention out of the hands of USDA and the biotech industry where it belongs and puts it squarely on the backs of organic and non-GE farmers,” Kimbrell says.
According to the lone AC21 panel member that dissented from the rest, the report as a whole does little to alleviate anything for the time being.
“Any farmer/seed grower contaminated will not want to disclose the contamination because they are illegally in possession of a patented material and could be subject to legal action for theft of intellectual property. The committee refused to ever recognize this fact,” writes Isaura Andaluz.

Kaspersky Denies Kremlin Ties, Compares Himself to Indiana Jones

http://www.wired.com/dangerroom/2012/07/kaspersky-indy/?utm_source=Contextly&utm_medium=RelatedLinks&utm_campaign=MoreRecen

Kaspersky Denies Kremlin Ties, Compares Himself to Indiana Jones


Russia security mogul Eugene Kaspersky. Photo: Stephen Voss
Eugene Kaspersky, the head of Russia’s largest cybersecurity firm, is denying that he or his company are closely tied to the Putin government in Moscow.
In a Wednesday post to his English-language blog, Kaspersky claims that my WIRED magazine profile detailing those Kremlin connections was filled with “dozens of misquotes, unsourced comments, personal judgments based on mere opinion  – or prejudice – and factual mistakes.”
“Not only did he forget to check his facts, in some cases he wrote almost the opposite of what I actually said in my numerous interviews with him over the past seven months,” he adds.
The security mogul doesn’t mention that his firm, Kaspersky Lab, closely cooperated with WIRED’s fact-checking team on nearly every line of the profile. Moreover, the few specific points of contention Kaspersky now raises with the article are flatly contradicted by both his private and public statements.
For instance, Kaspersky insists in his blog post that neither he nor his world-renowned team of cybersecurity researchers is anything more than tangentially linked to Russia’s government or to its security services.
“Remember ‘Raiders of the Lost Ark’ with Indiana Jones?” Kaspersky asks. “He was a archeologist — the best on the planet. And that’s why the U.S. military came to him for help; they knew nothing about history or mythology. Well it’s the same for what we do for governments worldwide today – we provide EXPERTISE. Nothing more.” (Emphasis in the original.)
“This is the first time,” he adds, “I’ve seen this major stretch to try and link our business with the Russian government.”
In interviews with me, Kaspersky (seen in the video below with Russian prime minister Dmitri Medvedev) and his employees painted a different picture.

Garry Kondakov, Kaspersky Lab’s Chief Sales and Marketing Officer, told me in February that the company might have gone bankrupt years ago if it wasn’t for a series of timely agreements to provide anti-virus software to the government-run Central Bank of Russia. ”The whole business started from this deal,” Kondakov said. “It was a breakthrough for the company.”
Today, Kaspersky Lab is one of only two companies licensed by the Russian Federal Security Service, or FSB, to sell anti-virus and similar security software to the Russian government.
Sometimes Kaspersky has been reluctant to discuss his relationship with official Moscow; at other times, less so. In 2008, for example, he showed off to a reporter a Christmas card from the Deputy Director of Intelligence for the FSB. During our talks, Kaspersky repeatedly mentioned that he had “very good friends” in the cybercrime divisions of Russia’s Interior Ministry, the local Moscow police department, and the FSB, the bureaucratic successor to the KGB.
Kaspersky has also espoused positions about internet policy that are practically identical to those of the Russian government, which recently passed a bill blacklisting sites promoting so-called extreme speech and other illegal activity. Social networks like LiveJournal are already suffering as a result.
In his blog post, Kaspersky says he’s all for these social networks to continue unfettered: “I constantly stress that social networks can be used for positive things, and would never wish this medium to be shut down or censored,” he writes.
However, in a speech to an audience of reporters and technology analysts on February 9, Kaspersky said the following:
Social networks, it’s too much freedom so people can manipulate others with the fake information. And it’s not possible to find who they are. They are anonymous from somewhere. And that’s why I see the social networks as one of the most dangerous — I don’t know what to call it — threats. But it’s a place for very dangerous action.
He then called for “government regulation on this media.”
When Kaspersky’s son was abducted, he told me, his government connections paid off: The FSB and the cops immediately began working to track down the kidnappers. “Usually police and FSB, they don’t cooperate,” Kaspersky explained in an April 21 interview in his Moscow apartment. “They started to cooperate without any pressure, without any message from the power. Because there we have very good relations with both FSB cyber security department and the Moscow police department.”
But while Kaspersky volunteered those details in April, he’s now upset by the way I characterized the aftermath of his son’s kidnapping, which became a bit of a political topic in Russia. Kaspersky says that I accused him of using his son as “bait.” Nowhere in my profile is that stated or implied. As a father, though, I can relate to what a sensitive and painful topic this must be for Kaspersky. The mere idea of losing a son — even for a few days — is panic-inducing. I tried to be as gentle and understanding as possible in addressing the matter.
At the same time, Kaspersky used his son’s rescue as a way to illustrate his good relations with the Russian authorities. And Kaspersky agreed to appear in a documentary that used his son’s abduction as a prime example of why social networks are dangerous. Those are facts that neither he nor I can avoid.
tly          

Russia’s Top Cyber Sleuth Foils US Spies, Helps Kremlin Pals

http://www.wired.com/dangerroom/2012/07/ff_kaspersky/all/   

Russia’s Top Cyber Sleuth Foils US Spies, Helps Kremlin Pals


Eugene Kaspersky, Soviet officer turned software tycoon.
Photo: Stephen Voss
It’s early February in Cancun, Mexico. A group of 60 or so financial analysts, reporters, diplomats, and cybersecurity specialists shake off the previous night’s tequila and file into a ballroom at the Ritz-Carlton hotel. At the front of the room, a giant screen shows a globe targeted by crosshairs. Cancun is in the center of the bull’s-eye.
A ruddy-faced, unshaven man bounds onstage. Wearing a wrinkled white polo shirt with a pair of red sunglasses perched on his head, he looks more like a beach bum who’s lost his way than a business executive. In fact, he’s one of Russia’s richest men—the CEO of what is arguably the most important Internet security company in the world. His name is Eugene Kaspersky, and he paid for almost everyone in the audience to come here. “Buenos dias,” he says in a throaty Russian accent, as he apologizes for missing the previous night’s boozy activities. Over the past 72 hours, Kaspersky explains, he flew from Mexico to Germany and back to take part in another conference. “Kissinger, McCain, presidents, government ministers” were all there, he says. “I have panel. Left of me, minister of defense of Italy. Right of me, former head of CIA. I’m like, ‘Whoa, colleagues.’”
He’s bragging to be sure, but Kaspersky may be selling himself short. The Italian defense minister isn’t going to determine whether criminals or governments get their hands on your data. Kaspersky and his company, Kaspersky Lab, very well might. Between 2009 and 2010, according to Forbes, retail sales of Kaspersky antivirus software increased 177 percent, reaching almost 4.5 million a year—nearly as much as its rivals Symantec and McAfee combined. Worldwide, 50 million people are now members of the Kaspersky Security Network, sending data to the company’s Moscow headquarters every time they download an application to their desktop. Microsoft, Cisco, and Juniper Networks all embed Kaspersky code in their products—effectively giving the company 300 million users. When it comes to keeping computers free from infection, Kaspersky Lab is on its way to becoming an industry leader.
But this still doesn’t fully capture Kaspersky’s influence. Back in 2010, a researcher now working for Kaspersky discovered Stuxnet, the US-Israeli worm that wrecked nearly a thousand Iranian centrifuges and became the world’s first openly acknowledged cyberweapon. In May of this year, Kaspersky’s elite antihackers exposed a second weaponized computer program, which they dubbed Flame. It was subsequently revealed to be another US-Israeli operation aimed at Iran. In other words, Kaspersky Lab isn’t just an antivirus company; it’s also a leader in uncovering cyber-espionage.
Kaspersky has 300 million customers. His geek squad uncovers US cyberweapons. And he has deep ties to the KGB’s successors in Moscow.
Serving at the pinnacle of such an organization would be a remarkably powerful position for any man. But Kaspersky’s rise is particularly notable—and to some, downright troubling—given his KGB-sponsored training, his tenure as a Soviet intelligence officer, his alliance with Vladimir Putin’s regime, and his deep and ongoing relationship with Russia’s Federal Security Service, or FSB. Of course, none of this history is ever mentioned in Cancun.
What is mentioned is Kaspersky’s vision for the future of Internet security—which by Western standards can seem extreme. It includes requiring strictly monitored digital passports for some online activities and enabling government regulation of social networks to thwart protest movements. “It’s too much freedom there,” Kaspersky says, referring to sites like Facebook. “Freedom is good. But the bad guys—they can abuse this freedom to manipulate public opinion.”
These are not exactly comforting words from a man who is responsible for the security of so many of our PCs, tablets, and smartphones. But that is the paradox of Eugene Kaspersky: a close associate of the autocratic Putin regime who is charged with safeguarding the data of millions of Americans; a supposedly-retired intelligence officer who is busy today revealing the covert activities of other nations; a vital presence in the open and free Internet who doesn’t want us to be too free. It’s an enigmatic profile that’s on the rise as Kaspersky’s influence grows.



Eugene Kaspersky as a young Soviet military cadet.
Photo: courtesy Eugene Kaspersky
Eugene Kaspersky was a bright kid. At 16 he was accepted to a five-year program at the KGB-backed Institute of Cryptography, Telecommunications, and Computer Science. After graduating in 1987, he was commissioned as an intelligence officer in the Soviet army. A quarter century after the fact, he still won’t disclose what he did in the military or what exactly he studied at the institute. “That was top-secret, so I don’t remember,” he says.
Kaspersky is more open about the day in October 1989 when a virus first infected his computer. It was a playful little thing called Cascade that made the characters on a PC screen tumble to the bottom like Tetris blocks. Curious, Kaspersky saved a copy of the virus on a floppy disk to study how the code worked. A couple of weeks later he encountered a second virus, and then a third. His interest grew with each discovery. “For Eugene, it was an addiction,” his friend Alexey De Mont De Rique says. Each time a new virus appeared, Kaspersky would “sit in front of the computer for 20 hours straight,” trying to pick it apart, De Mont De Rique recalls. In the small world of antivirus researchers, the Soviet officer quickly made a name for himself.
By the early ’90s, Kaspersky wanted out of the army so he could study viruses full-time. There was one small problem: “It was almost not possible,” he explains. The only way to get out was to go to jail, get sick, or prove yourself to be extremely incompetent. Kaspersky’s old instructor at the Institute of Cryptography had a company that sold everything from athletic shoes to PCs. Somehow—Kaspersky won’t answer questions about this either—the former professor was able to get Kaspersky a discharge and hire him. Kaspersky’s wife, Natalya, and De Mont De Rique soon joined him at the company.
In 1997 the three of them went into the antivirus business for themselves. Their software was advanced for the time. They were the first to allow users of Internet security software to watch malware operate in an isolated “sandbox,” quarantined from the rest of the computer; they were among the first to store entire programs in a virus database. The young company flourished even as Kaspersky’s marriage to Natalya fizzled. The couple divorced in 1998, but she continued to handle sales and finance while he worked in the “virus lab,” classifying new threats himself. “The typical analyst would process maybe 100 pieces of new malware a day,” says Aleks Gostev, one of Kaspersky’s top researchers. “Eugene would do 300.”
Today Kaspersky Lab employs about 200 virus researchers—some in the US and China, but the bulk of them in a converted electronics factory 6 miles northwest of the Kremlin. On a sunny April morning when I visit, the old factory feels more like a grad school, with tattooed twentysomethings from across the former Soviet Union roaming the curved halls. The school mascot seems to be Kaspersky himself. Some employees wear Che Guevara T-shirts—with the boss’s face replacing the revolutionary’s. On the walls are black-and-white photos of long-serving employees dressed in war paint and moccasins like Native Americans. “Eugene the Great Virus Hunter,” reads the caption under the CEO’s image—in which he’s drawing a bow and arrow. Some 12,543 emails about suspicious programs came into the company just this morning, bringing the grand total to nearly 7.8 million.
‘Rule number one of successful companies here is good relations with the secret police.’
The accumulation happens automatically. When a user installs Kaspersky software, it scans every application, file, and email on the computer for signs of malicious activity. If it finds a piece of known malware, it deletes it. If it encounters a suspicious program or a message it doesn’t recognize—and the user has opted to be part of the Kaspersky Security Network—it sends an encrypted sample of the virus to the company’s servers. The cloud-based system automatically checks the code against a “whitelist” of 300 million software objects it knows to be trustworthy, as well as a “blacklist” of 94 million known malicious objects. If the code can’t be found on either of these lists, the system analyzes the program’s behavior—looking at whether it’s designed to make unauthorized changes to the computer’s configuration options, for example, or whether it constantly pings a remote server. Only in the rare instance that the system is stumped will one of Kaspersky’s T-shirt-clad virus researchers step in. They’ll characterize the code by function: password stealer, bogus web page server, downloader of more malicious programs. Then they’ll suggest a “signature” that can be used to spot and filter out the malware in the future. In just minutes, a software update that incorporates these new signatures can be pushed out to Kaspersky’s tens of millions of users.
This is the core of the $600-million-a-year business that grew out of Kaspersky’s virus hobby. It’s really not all that different from the way US security companies like Symantec or McAfee operate globally. Except for the fact that in Russia, high tech firms like Kaspersky Lab have to cooperate with the siloviki, the network of military, security, law enforcement, and KGB veterans at the core of the Putin regime.
The FSB, a successor to the KGB, is now in charge of Russia’s information security, among many other things. It is the country’s top fighter of cybercrime and also operates the government’s massive electronic surveillance network. According to federal law number 40-FZ (.pdf), the FSB can not only compel any telecommunications business to install “extra hardware and software” to assist it in its operations, the agency can assign its own officers to work at a business. “Rule number one of successful companies here is good relations with the siloviki,” says one prominent member of Russia’s technology sector.
Kaspersky says the FSB has never made a request to tamper with his software, nor has it tried to install its agents in his company. But that doesn’t mean Kaspersky and the security agency operate at arm’s length. Quite the opposite: “A substantial part of his company is intimately involved with the FSB,” the tech insider says. While the Russian government has used currency restrictions to cripple a firm’s international business in the past, Kaspersky faces no such interference. “They give him carte blanche for his overseas operations, because he’s among the so-called good companies.”

Eugene Kaspersky’s lab isn’t just an antivirus company; it’s also a leader in uncovering cyber-espionage.
Photo: Stephen Voss
Next door to the Moscow virus lab is the home base for another arm of the operation—a team of elite hackers from around the world that Kaspersky hand-selected to investigate new or unusual cybersecurity threats. Kaspersky calls this his Global Research and Expert Analysis Team—GREAT, for short. Two of them are waiting for me in their office. Sergei Golovanov sports rectangular glasses and a beard out of a ’90s nu-metal video. Aleks Gostev is skinny as a rope and has dark circles under his eyes.
With Kaspersky’s encouragement, GREAT has become increasingly active in helping big companies and law enforcement agencies track down cybercriminals. Gostev assisted Microsoft in its takedown of the Kelihos botnet, which churned out 3.8 billion pieces of spam every day at its peak. Golovanov spent months chasing the Koobface gang, which suckered social media users out of an estimated $7 million.
One of GREAT’s frequent partners in fighting cybercrime, however, is the FSB. Kaspersky staffers serve as an outsourced, unofficial geek squad to Russia’s security service. They’ve trained FSB agents in digital forensic techniques, and they’re sometimes asked to assist on important cases. That’s what happened in 2007, when agents showed up at Kaspersky HQ with computers, DVDs, and hard drives they had seized from suspected crooks. “We had no sleep for a month,” Golovanov says. Eventually two Russian virus writers were arrested, and Nikolai Patrushev, then head of the FSB, emailed the team his thanks.
Kaspersky’s public-sector work, however, goes well beyond Russia. In May, Gostev and Kaspersky were summoned to the Geneva headquarters of the International Telecommunication Union, the UN body charged with encouraging development of the Internet. The Russians were ushered into the office of ITU secretary-general Hamadoun Touré, where the Soviet-educated satellite engineer told them that a virus was erasing information on the computers of Iran’s oil and gas ministry. This was coming just two years after the discovery of the Stuxnet worm, which had damaged Iran’s centrifuges. Touré asked Kaspersky to look into it.
Back at the lab, analysts from GREAT began combing through archived reports from customers’ machines. One file name stood out: ~DEB93D.tmp. The virus was eventually found on 417 customers’ computers—398 of which were in the Middle East, including 185 in Iran. Some machines had been infected since 2010, but the file had never been deeply analyzed. The researchers were able to isolate one piece of the malicious code—and then another and another.
One module of the software surreptitiously turned on a machine’s microphone and recorded any audio it captured. A second collected files, especially design and architectural drawings. A third uploaded captured data to anonymous command-and-control servers. A fourth module, with the file name Flame, infected other computers. The analysts discovered about 20 modules in all—an entire toolkit for online espionage. It was one of the biggest, most sophisticated pieces of spyware ever discovered. In honor of the transmission program, the researchers called it Flame. On May 28, a Kaspersky analyst announced what the team had found.
Flame was another part of America’s shadow war against Iran — and Kaspersky killed it.
The spyware was too complex for simple crooks or hacktivists, the researchers said. Flame had been coded by professionals, almost certainly at a government’s behest. The company called it a cyberweapon and speculated that it was related to Stuxnet.
On June 1, The New York Times revealed for the first time that the White House had, in fact, ordered the deployment of Stuxnet as part of a sophisticated campaign of cyberespionage and sabotage against Tehran. Then, on June 19, The Washington Post was able to confirm that Flame was yet another part of this shadow war against Iran. Kaspersky had outed—and in effect killed—it.
For Kaspersky, exposing Flame reflects his company’s broader ambition: to serve as a global crime-stopper and peacekeeper. Malware has evolved from a nuisance to a criminal tool to an instrument of the state, he says, so naturally he and his malware fighters have grown in stature and influence too. “My goal is not to earn money. Money is like oxygen: Good idea to have enough, but it’s not the target,” he says. “The target is to save the world.”
In a locked room down the hall from his office, Kaspersky is working on a secret project to fulfill that lofty ambition. Not even his assistant has been allowed inside. But after we’ve spent a day together—and knocked back a few shots of Chivas 12—he unlocks the door and offers me a peek. It’s an industrial control system, a computer for operating heavy machinery, just like the ones that Stuxnet attacked (and, Kaspersky researchers believe, Flame may also have targeted). Kaspersky’s team is quietly working on new ways to harden these systems against cyberattack—to protect the power grids and prisons and sewage plants that rely on these controllers. The idea is to make future Stuxnets harder to pull off. The controllers haven’t been engineered with security in mind, so the project is difficult. But if it succeeds, Kaspersky’s seemingly outsize vision of his company’s role in the world might become a little less outlandish.
In the meantime, there’s always politics.

Kaspersky at the 2011 Brazilian Grand Prix, flanked by drivers from the Ferrari F1 team that he sponsors.
Photo: courtesy of Kaspersky Lab
Kaspersky has cultivated the image of a wild man with cash to burn—the flamboyant say-anything, do-anything, drink-anything gazillionaire. In Asia, he’s clowned around in TV commercials with Jackie Chan. In Europe, Kaspersky sponsors the Ferrari Formula One team and goes on Dublin pub crawls with Bono. Back in Russia, he throws New Year’s parties for 1,500. The most recent one had a rock-and-roll theme; Kaspersky took the stage in a Harley jacket. Last summer he took some 30 people to Russia’s Kamchatka Peninsula for a volcano-hiking excursion. Then there are the Kaspersky Lab conferences disguised as boozy getaways (or perhaps vice versa): the “analysts’ summit” on Spain’s Costa del Sol, the “VIP executive forum” in Monte Carlo, the “press tour” in Cyprus, the whatever-it-was thing in Cancun.
All of this might lead some to dismiss Kaspersky as a dilettante plutocrat who drinks single-malt and gets made up for TV while his employees do the real technical work. But the critics would be missing the point: One of the systems Kaspersky is now trying to hack is politics, and his antics are part of the act. Every trip to Shanghai’s Formula One race or the London Conference on Cyberspace is another chance to court diplomats and politicians, another chance to extend his company’s influence. And one of his goals is to persuade policymakers to refashion the Internet into something more to his liking—and, as it happens, something more to the liking of the Putin government as well.
Kaspersky says it’s time to give up privacy online: ‘By protecting our right to freedom we actually sacrifice it!’
In one hotel ballroom after another, Kaspersky insists that malware like Stuxnet and Flame should be banned by international treaty, like sarin gas or weaponized anthrax. He argues that the Internet should be partitioned and certain regions of it made accessible only to users who present an “Internet passport.” That way, anonymous hackers wouldn’t be able to get at sensitive sites—like, say, nuclear plants. Sure, it might seem like we’d be sacrificing some privacy online. But with all the advertisers, search engines, and governments tracking us today, Kaspersky argues, we don’t really have any privacy left anyway. “You can have privacy if you live somewhere in the jungle or the middle of Siberia,” he recently told a confab in the Bahamas.
The Internet grew from a network of researchers to the global nervous system in large part because practically anyone was able to access any part of it from anywhere—no ID needed. And the values of openness, freedom, and anonymity became deeply embedded in net culture and in the very architecture of the network itself. But to Kaspersky, these notions no longer work: By “protecting our right to freedom we actually sacrifice it! We sacrifice the right to safe Internet surfing and to not get infected by some nasty piece of malware at every step.”
The idea of stripping some amount of privacy from the Internet is gaining traction in many sectors, thanks at least in small part to Kaspersky’s lobbying. In Cancun, he was joined onstage by Alexander Ntoko, a top official at the International Telecommunication Union. “Why don’t we have digital IDs as a de facto for everybody?” he asks. “When I’m going to my bank, I’m not going to cover my face.” In other words, why should things be any different online?
The ITU was once a bureaucratic backwater. In recent years, however, the Russian and Chinese governments have been pushing to give the agency a central role in governing the Internet. Instead of the US-dominated nonprofits that currently coordinate domain names and promote technical standards, they want to turn authority over to a gathering of national governments represented by the ITU. It’s a move that one of the Internet’s creators, Vint Cerf, told Congress risks “losing the open and free Internet,” because it would transfer power from geeks to government bureaucrats. The ITU is set to revisit the 24-year-old treaty governing international telecommunications in December.
Whether or not it secures this power, the ITU has found a willing ally in Kaspersky. When he traveled to ITU headquarters in Geneva, a few months after Cancun, Kaspersky not only agreed to look into the attacks on the Iranian oil ministry, he also told ITU chief Touré that he would assign some of his top researchers to be on call to help the organization with any future investigations. It’s a good deal for both men. Kaspersky gets to extend his influence—and maybe catch the next big cyberweapon. Touré and the ITU get a personal cybersecurity team.
But Kaspersky’s closest political ties remain in Russia. As one of his country’s most successful technology entrepreneurs—and, in many ways, Russia’s spokesman for all things Internet—Kaspersky has hosted former president and current prime minister Dmitry Medvedev in his offices (see video below); Medvedev, in turn, appointed Kaspersky to serve in Russia’s Public Chamber, which is charged with monitoring the parliament.
Kaspersky and the Moscow government have espoused strikingly similar views on cybersecurity. This goes beyond the security industry’s basic mission of keeping data safe. When Kaspersky or Kremlin officials talk about responses to online threats, they’re not just talking about restricting malicious data—they also want to restrict what they consider malicious information, including words and ideas that can spur unrest.
Kaspersky can’t stand social networks like Facebook or its Russian competitor, VK (formerly known as VKontakte). “People can manipulate others with the fake information,” he says, “and it’s not possible to find who they are. It’s a place for very dangerous action.” Especially dangerous, he says, is the role of social networks in fueling protest movements from Tripoli to Moscow, where blogger Alexei Navalny has emerged as perhaps the most important dissident leader and sites like VK and LiveJournal have helped bring tens of thousands of people into the streets. Kaspersky sees these developments as part of a disinformation campaign by antigovernment forces to “manipulate crowds and change public opinion.”
Nikolai Patrushev—the former FSB chief who now serves as Putin’s top security adviser—makes a nearly identical case. In June he told a reporter that outside forces on the Internet are constantly creating tensions within Russian society. “Foreign sites are spreading political speculation, calls to unauthorized protests,” he says.
Russia’s government and its most famous technology entrepreneur have long had each other’s backs, cooperating on cybercrime investigations and supporting each other’s political agendas. But the two became utterly intertwined at 6:30 in the morning on April 19, 2011, when Kaspersky’s cell phone rang in his London hotel room. According to the caller ID, it was Ivan, Kaspersky’s 20-year-old son. But the voice on the other end was not Ivan. It was an older man who politely told Kaspersky: “We’ve got your son.”

Eugene Kaspersky now travels in Russia with bodyguards, after the kidnapping of his son.
Photo: Stephen Voss
Outwardly, Kaspersky didn’t react to the news of Ivan’s kidnapping. He said he was tired and asked the caller to ring him back later in the morning—which the caller did, from another number. This time, Kaspersky said he was in an interview and told the guy to make a third call.
It was a ploy, a stall for time while Kaspersky hurriedly reached out to his corporate security manager, who reached out to the FSB. Ordinarily the Russian intelligence service isn’t in the business of freeing kidnap victims. But Ivan Kaspersky wasn’t your average abductee. “My first thought was that this is serious. Second, immediately call the FSB. And third, they are stupid to attack me,” Kaspersky says. “I was 100 percent sure—well, 99 percent sure—that FSB and police would find them. We have very good relations with both the FSB cybersecurity department and the Moscow police department. They know us. They know us as people who support them when they need it. They started to work like crazy.”
That night Kaspersky took the red-eye back to Moscow. He plodded his way through the morning rush hour, his phone ringing every few minutes. As the kidnappers made their demands—3 million euros in denominations of 500—they tried to cover their tracks, switching cell phones and SIM cards constantly. But with every call, the kidnappers were giving the FSB more data to track them down.
According to the caller ID, it was Kaspersky’s kid. But the voice on the other end was an older man’s, saying: ‘We’ve got your son.’
Kaspersky arrived at a police station in central Moscow and promptly passed out from anxiety and exhaustion. He and his ex-wife stayed there for the next four days, pacing the halls while the FSB pored through call records and the Moscow cops staked out a suburban cabin where they believed Ivan was being held. After a few days, the officers lured the kidnappers out of the house with the promise of a ransom payment. They were captured without a shot. Ivan was freed, a little grimy—there was no running water in the cabin—but otherwise fine. “It was probably the only period in his life when he was reading books,” jokes his mother, Natalya Kaspersky, who met him at the scene.
At first, Kaspersky publicly blamed himself for not adequately protecting his family. But later he started blaming something else: VK. Kaspersky said that the Russian social network had tempted Ivan into posting his address, phone number, even details of his internship at InfoWatch, Natalya’s security company. “Social networks shouldn’t encourage users to post that sort of information. If a site asks for private information, then criminal charges should be brought against it in the event of a leak,” Kaspersky told Russia’s RT television channel in October. Widely viewed as a Kremlin propaganda outlet, RT aired the remarks as part of a documentary on the death of online privacy and the dangers of social networks, with Ivan’s kidnapping as a primary example. The program encouraged people to protect themselves by dropping offline completely. As it happened, the documentary ran just as online opposition to the ruling party was starting to bubble up. In the months that followed, top bloggers and activists were detained by the government, and the FSB tried (unsuccessfully) to force VK to purge the pages of some groups from its network.
The Kaspersky kidnapping ended up being a tool for the ruling party. But according to Natalya, the whole kidnapped-because-of-VK story is nonsense. “They found him on social networks? It’s not true. They followed him for a month or more. They knew all his ways, where he is going, whom he contacts,” she says. Yes, Ivan posted an address online—”a false address from an old house.” There’s no way, she says, that this helped the kidnappers.
So why did Eugene Kaspersky publicly blame VK? Perhaps Kaspersky simply let his emotions get the better of him—his son had been kidnapped, after all. Perhaps he mistook the fake address Ivan posted for a real one. Whatever the reason, in the end, the son’s kidnapping became a way to attack the father’s political foes.
Eugene Kaspersky now travels in Moscow with a team of bodyguards. He moved to a duplex in a gated community bordering a park—better for keeping his girlfriend and their infant son safe, he explains. A wraparound balcony overlooks the still-frozen Moskva River and the site of Kaspersky Lab’s new five-story headquarters. To the left you can almost see Kaspersky’s childhood home: a one-room shack originally built for prison laborers in the Stalin era.
It’s an early Sunday afternoon in late April. Kaspersky, smoking a Chinese cigarette, is wearing the same bargain-rack striped shirt he was wearing Friday. His mother, who also lives in the complex, heats up blintzes and opens some canned caviar. Up close it becomes clear that Kaspersky’s image as a mega-rich, hyperconnected playboy is mostly an act. In truth, he stays away from Russia’s oligarchs, whom he sees as little different from the cybercrooks he chases. He views his move into politics as a necessary evil, an offer he’s in no position to refuse. Kaspersky doesn’t bother with political rallies or Moscow’s famously immoderate nightlife; he’d rather be in an airplane seat on his way to some conference to share ideas with other technophiles. When he goes to places like Kamchatka, he says, he takes employees or clients. “I don’t have any friends outside of work.”
Sure, Kaspersky touts a Kremlin-friendly line. In Putin’s Russia, executives who don’t have a habit of disappearing.
While critics assume that Kaspersky’s company is a virtual arm of Russian intelligence, he and his staff insist, not unconvincingly, that their work with the FSB has its limits. They argue that using its software to spy on users would undermine the company’s credibility worldwide; it would be like the local locksmith moonlighting as a cat burglar. That credibility is at the heart of Kaspersky Lab’s business. Without lots of customers, there would be no Kaspersky Security Network, no database of known threats or tally of infected machines.
Yes, Kaspersky publicly touts a Kremlin-friendly line. But in Putin’s Russia, executives who neglect to do so have a disturbing habit of winding up in jail or being forced into exile. Besides, you don’t need to be a Moscow crony to push against free speech and privacy online. Plenty of Western officials are doing that too. Until 2011, Italians had to present their ID cards before using Wi-Fi at an Internet café. The European Commission is now mulling a continent-wide system of “electronic authentication.” British prime minister David Cameron contemplated cracking down on social media after the 2011 London riots. And retired US vice admiral Mike McConnell wrote in The Washington Post about the “need to reengineer the Internet to make attribution … more manageable.” He previously served as US director of national intelligence—America’s top spy.
In many ways, the relationship between the Kremlin and Kaspersky Lab is the same as the one between Washington and the big US security companies. Moscow gives millions to Kaspersky to help secure government networks—much as the Pentagon pours millions into contracts with McAfee and Symantec. Kaspersky helps the FSB track down cybercrooks; McAfee and Symantec work with the FBI. Kaspersky employees brief the Duma, Russia’s parliament; American researchers brief Congress and the White House. These security firms have all become key players in their home countries’ network defenses and in cybersecurity investigations worldwide.
But while the American and Russian companies are similar, there are important differences. Stuxnet was a highly classified US operation serving one of the government’s top geopolitical goals. Symantec, a US company, went after it anyway. It’s hard to find a similar case of Kaspersky and the Kremlin working at cross-purposes.
In December 2011, Kaspersky came under criticism for appearing to do the opposite—ignoring an act of online criminality when it was politically convenient. On the eve of Russia’s parliamentary elections, massive denial-of-service attacks brought down social networks like LiveJournal, media outlets like Kommersant.ru, and the independent election watchdog Golos. It seemed to be a politically motivated hit on potential opponents and critics of the ruling regime. Yet Kaspersky Lab—which boasts that its software can spot and fight DDoS attacks—denied the existence of any such activity. “We detected none. Very strange,” Kaspersky tweeted. The next day he wrote on his blog that the attacks actually had been detected, but he speculated that many of the sites were victims of technical problems or perhaps their own popularity.
Kaspersky denies that he blew off the DDoS attacks in an attempt to curry favor with the ruling powers. (Then he claims that pro-Putin sites got hit by the online strikes as well.) But Andrei Soldatov, a muckraking investigative journalist whose Agentura.ru site was hammered in the attacks, has a very different view: “I cannot explain Kaspersky’s ignorance by anything but conscious intention to take the Kremlin’s side, a position very weird for the independent expert he claims to be.”
Kaspersky’s office has just the trappings you’d expect for someone who rose from a kid in a shack to become a continent-hopping mogul: a Ferrari racing jacket, boxes of his software in Chinese and German, a model of SpaceShipTwo, the aircraft that’s going to fly well-heeled tourists to the edge of the atmosphere (Kaspersky already has a $200,000 ticket). Late one afternoon, he reaches into a small closet and pulls out a lab coat with his company’s logo to show me. Behind that is a basketball jersey from the New Jersey Nets, the NBA team owned by Russian billionaire Mikhail Prokhorov. At the very back of the closet I glimpse the dark green dress jacket from Kaspersky’s Soviet Army uniform. The garment is in pristine condition; it looks like it could still be worn in a military parade.
There are plenty of Russian magnates content to use their Kremlin connections and corruption-fueled profits to bully and buy their way into the global arena. Kaspersky has long tried to play a different game: He’s an international entrepreneur and thinker who is from Putin’s Russia, but not of it. Kaspersky’s financial success and influence is a testament to how skillfully he has walked this fine line. Yet the questions endure: Can a company so valuable to Moscow’s government ever be truly independent of it? And what else is hidden in the back of the closet, that the rest of the world can’t see?
I go in for a closer look at the jacket. Kaspersky shuts the door. “It’s nothing,” he says, walking out of the room. “Let’s find a drink.”
         

Cosmo, the Hacker ‘God’ Who Fell to Earth

http://www.wired.com/gadgetlab/2012/09/cosmo-the-god-who-fell-to-earth/all/               

Cosmo, the Hacker ‘God’ Who Fell to Earth

Cosmo. Photo: Sandra Garcia/Wired
Cosmo is huge — 6 foot 7 and 220 pounds the last time he was weighed, at a detention facility in Long Beach, California on June 26. And yet he’s getting bigger, because Cosmo — also known as Cosmo the God, the social-engineering mastermind who weaseled his way past security systems at Amazon, Apple, AT&T, PayPal, AOL, Netflix, Network Solutions, and Microsoft — is just 15 years old.
He turns 16 next March, and he may very well do so inside a prison cell.
Cosmo was arrested along with dozens of others in a recent multi-state FBI sting targeting credit card fraud. It is the day before his court date, but he doesn’t know which task force is investigating him or the name of his public defender. He doesn’t even know what he’s been charged with. It’s tough to narrow it down; he freely admits to participation in a wide array of crimes.
With his group, UGNazi (short for “underground nazi” and pronounced “you-gee” not “uhg”), Cosmo took part in some of the most notorious hacks of the year. Throughout the winter and spring, they DDoS’ed all manner of government and financial sites, including NASDAQ, ca.gov, and CIA.gov, which they took down for a matter of hours in April. They bypassed Google two step, hijacked 4chan’s DNS and redirected it to their own Twitter feed, and repeatedly posted Mayor Michael Bloomberg’s address and Social Security number online. After breaking into one billing agency using social-engineering techniques this past May, they proceeded to dump some 500,000 credit card numbers online. Cosmo was the social engineer for the crew, a specialist in talking his way past security barriers. His arsenal of tricks held clever-yet-idiot-proof ways of getting into accounts on Amazon, Apple, AOL, PayPal, Best Buy, Buy.com, Live.com (think: Hotmail, Outlook, Xbox) and more. He can hijack phone numbers from AT&T, Sprint, T-Mobile and your local telco.
“UGNazi was a big deal,” Mikko Hypponen, the chief security researcher at F-Secure, told Wired via email. “The Cloudflare hack was a big deal. They could have done much more with that technique.”
So, yes, he is Cosmo the God. But before he was Cosmo, he was Derek*. And while Cosmo may be a god, Derek is just a kid. A high school dropout. A liar, fraud, vandal and thief. But ultimately a kid, without much adult supervision or guidance.
I met Cosmo by accident and opportunity, after hackers used social-engineering techniques to circumvent Apple’s and Amazon’s security mechanisms and break into my accounts. They wrought enormous damage, wiping my computer, phone and tablet, deleting my Google account, and hijacking my Twitter account.
After it happened I fell into their world and began communicating regularly with the very hacker who jacked me, a kid named Phobia. He introduced me to Cosmo, who wanted to tell me about all manner of other account vulnerabilities. And last month, I flew down to Long Beach to talk to him face to face.
*Editor’s note: Because he is a minor, Wired is not disclosing Cosmo’s real name.
The suburban Southern California neighborhood that Cosmo calls home. Photo: Sandra Garcia/Wired

Becoming Cosmo

Cosmo squirms in his chair as we sit in his grandmother’s living room. Her small apartment, with dark brown carpeting, is directly downstairs from his own. The front door is open to let the breeze blow. It’s hot, even sitting next to a fan. There is a picture of Jesus on a table. Cosmo’s family has lived in Long Beach for four generations; in fact, his great grandfather poured the foundation on the very property where we now sit.
Cosmo lives upstairs with his mother, who he says typically works six days a week. She gets home late in the evening. He doesn’t speak to his father. They live just south of State Route One in Long Beach. When I look up their address on CrimeReports, it is right on the border of a zone where crime is extremely frequent and violent. But Derek doesn’t get involved with any of that, says his grandmother.
“Derek is always, always home. He don’t go anywhere,” says his grandmother. “He’s a good kid. He’s a very good kid.”
That may be, but it turns out this wasn’t his first tangle with the law. He describes previous run-ins as he sits cramped, legs and head akimbo, in the passenger seat of my rental car, while we drive around looking for a quiet place to talk. The year before, he’d been arrested after getting caught smoking pot in a bathroom at school. I ask if that was the only other time. He says it was. Then he pauses.
“Oh! And I also got, I guess you could say arrested, in October 2011. Someone called in a bomb threat to my school. They did it every day of the school week, and on the fifth day they said my name. The fifth day they called in and said I had a gun. It was other hackers.”
Cosmo’s name and address — his documents, or “dox” as hackers know them — have long been published online. And it’s meant he’s been a target for both vengeance and lulz — just, you know, because he’s Cosmo the God and one of the more notorious social engineers around.
“Someone also swatted my house,” he tells me, smiling. “It happens a lot to me. Well, the SWAT team was only once at my house, but lots of time with the local police department.” Swatting is a vicious prank where a hacker uses an internet call system to report a hostage situation, which scrambles local law enforcement to the victim’s doorstep.
“Through AOL, you can use AT&T Relay to call the SWAT. It’s for handicapped people. You have to sign up, but it’s easy to sign up. You just instant message the username AT&T Relay and then 911. They ask what’s your location, the emergency. That’s what they did to me. That’s what they did to my school too, because there’s less ways of getting caught.”
Cosmo shrugs at this, like it’s all perfectly normal stuff for a teenage boy. And the thing is, in 2012, it is perfectly normal for a bored teenage boy on the edge of delinquency. Instead of egging cars and swinging bats at mailboxes, he’s breaking into e-mail accounts.
Cosmo got into hacking via online gaming. He grew up on Xbox, and played others online competitively. One day, he was knocked offline mid-match, forfeiting the game. He discovered that this was done via a simple trick, where one gamer turns a script on his opponent’s IP address. He began using this same tactic himself. It was easy and required nothing more than off-the-shelf programs, like Cain and Able. It was a veil lifted.
Xbox gamers know each other by their gamertags. And among young gamers it’s a lot cooler to have a simple gamertag like “Fred” than, say, “Fred1988Ohio.” Before Microsoft beefed up its security, getting a password-reset form on Windows Live (and thus hijacking a gamer tag) required only the name on the account and the last four digits and expiration date of the credit card on file. Derek discovered that the person who owned the “Cosmo” gamer tag also had a Netflix account. And that’s how he became Cosmo.
“I called Netflix and it was so easy,” he chuckles. “They said, ‘What’s your name?’ and I said, ‘Todd [Redacted],’ gave them his e-mail, and they said, ‘Alright your password is 12345,’ and I was signed in. I saw the last four digits of his credit card. That’s when I filled out the Windows Live password-reset form, which just required the first name and last name of the credit card holder, the last four digits, and the expiration date.”
This method still works. When Wired called Netflix, all we had to provide was the name and e-mail address on the account, and we were given the same password reset.
Cosmo says he did not know with certainty Netflix had the information he wanted prior to the call. But his success was an ah-ha moment.
“I figured that if Netflix could score, so could any big provider. Back then, Amazon was easier. And then it got a little bit more security. They made it where you needed the last four of the credit card to reset [a password]. That’s when I figured out you just have to go to fakenamegenerator.com to get a credit card number. So, I would just add the card, hang up, call back, give them the last four and they’d reset it.”
This Amazon method, the same one other hackers used to break into my accounts, was one of Cosmo’s innovations. (Although other hackers also claim to have discovered it independently.) I ask him how he figured out he could pull it off, because it’s as clever as it is devious. He shrugs. “It just came to me.”
Photo: Sandra Garcia/Wired

Enter UGNazi

Cosmo was soon finding all manner of sources for getting information: Hulu, Buy.com, BestBuy, PayPal, Apple and AOL all offered avenues into others’ accounts, where he could peep in at credit card numbers, addresses and emails.  He learned new social-engineering techniques online and likewise passed along what he knew to others. There is a constant information trade back and forth online. IRC and AIM are the user manuals to every back-end customer service system in corporate America.
Meanwhile, he had more time than ever to devote to his particular brand of hacking, also known as socialing. After the bomb threats, he was asked to leave Woodrow Wilson High School in October. He started taking classes at an adult continuing education program where he could complete his degree. But he found it boring. And he had to walk there and back, three miles each way. So in December, he quit.
This meant he was now home all the time, bored. The next month, an online friend of his approached him about joining a new hacking team. The friend was Josh the God, and he was putting together a hacktivist group called UGNazi, with the intention of using their combined skills to protest SOPA and CISPA. Far from being intimidated by the proposed anti-piracy legislation, they were motivated by it. They wanted to attack it and those who supported it. Cosmo’s job was to socially engineer companies that could provide data about their targets.
One of their initial targets was UFC.com–the website of the Ultimate Fighting Championship–in retaliation for its support of SOPA. (They did the same to Coach.com.) Once Cosmo gathered the necessary background information on UFC’s president, Dana White, they were able to get into the company’s account with Network Solutions. Via Network Solutions, they redirected the DNS to one they controlled. Bang.
SOPA, of course, died. But UGNazi lived on. They took down the websites for the states of California and Washington and the cities of New York and Washington D.C. They took out Papa John’s website after it failed to deliver a pizza in a timely manner. They hacked into MyBB.com, the back-end that many websites use to power forums, and then hijacked its domain. They were pure mayhem.
“UGNazi was also remarkable in how they apparently had no limits on who to attack–the U.S. government, CIA, Wounded Warrior etc.” says Hypponen, “and no apparent [sense of] self preservation, which led to their demise. In this regard, UG and Lulzsec were similar.”
The group’s last big takedown was 4Chan. “Josh thought everyone on 4chan was a child molester,” Cosmo explained. But there was more than likely another motivation as well: Lulz. Not to mention huge traffic. If they could redirect 4chan to their own Twitter feed, even for a minute, they would achieve instant notoriety.
Their avenue to jack 4chan was a web services company called CloudFlare that was providing 4chan’s DNS services. (Ironically, UGNazi.com was also a CloudFlare customer.)
The original idea was to take CloudFlare via Network Solutions, something UGNazi done many times before with other companies. They had gotten CloudFlare CEO Matthew Prince’s dox and had all the information they typically needed to hijack a NetSol account. But they hit a snag: Prince had a two-step security mechanism on his account. They needed a device-specific PIN code that they couldn’t get. But they had been able to ascertain that Prince’s phone number was on AT&T, which meant they had another avenue of attack: his Google email, which used that AT&T number as an account recovery option.
Security is only as strong as its weakest link. And in this case, the weak link was AT&T. If UG Nazi could get to Prince’s phone, which was his backup mechanism, they could get to his Google account. And to get to his phone, they just needed his Social Security number. That sounds like it’s a tough thing to get. It’s not.
Social Security numbers are freely bought and sold online, not on hidden Tor sites or via some dark back alley, but on the open Web in broad daylight. The cost to buy a Social Security number and date of birth on one Russian site Cosmo referred us to, for example, is $3.80, payable via an alternative currency favored by carders called Liberty Reserve.
Once they had Prince’s Social Security number, it was time to manipulate AT&T’s customer service.
“First we called AT&T to forward [Prince’s] cell phone number to Google Voice. We did that, and the lady said ‘alright what’s your name?’ And Josh said ‘Matthew Prince.’ And the lady said, ‘what’s the last four digits of your SSN?’ And Josh gave the full SSN anyway. And she was like ‘alright what’s the phone number you want to forward it to?’
“He gave her the Google Voice number, and it was forwarded.”
Cosmo initially said UGNazi used text message forwarding, which both Google and Prince say is not the case. Furthermore, while Wired was able to set up a forwarding number in the manner Cosmo described, we were not able to forward text messages to Google Voice from AT&T. Voice yes, text no. It’s the one glaring inconsistency in everything Cosmo reported. When I asked him about it again, via AIM, he replied “maybe it’s just voice for them then.”
As Prince described the attack to Wired, his personal Gmail address was the backup address for his corporate Google Apps email. Although he had two step on the corporate account, he did not have it on the personal one. Furthermore, his phone number was the account-recovery option on that personal address. So UGNazi sent an account recovery request to his phone, which was forwarded to their number, and then used it to take over his personal Gmail.
“Once they were in that, they used it to get into my corporate email by doing an account recovery, which was sent to my personal email,” says Prince. “Even though I had two-factor authentication on, for this one account-recovery procedure, Google didn’t verify any out-of-band system. They just sent the email to my personal Gmail and then, once they were in that, they were able to get into my personal email.”
Google says this type of attack is no longer possible. A Google spokesperson gave Wired a statement noting “We fixed a flaw that existed in the account recovery process for Google Apps for Business customers under very specific conditions. If an administrator account that was configured to send password reset instructions to a registered secondary email address was successfully recovered, 2-step verification would have been disabled in the process. This could have led to abuse if their secondary email account was compromised through some other means. We swiftly resolved the issue to prevent further abuse.”
Ultimately, the end result was that UG Nazi was able to bypass the Google two factor and gain access to Prince’s CloudFlare’s email and then admin tools. They were then able to redirect 4Chan’s DNS to point to their own Twitter account. The hack lasted mere minutes, but given 4chan’s traffic volume, it was enough. It was extremely high profile, and UG Nazi was now basically the most notorious hacking crew of 2012.

People Are The Key to Every Lock

As he did with Prince and CloudFlare, Cosmo accomplished many of his feats by going after individuals associated with organizations UG Nazi was targeting. He would gather little bits of information here and there, collecting dox data from various online services, like addresses and credit card numbers, until he had what he needed to launch an attack. Often, he did that by calling a company’s tech support system and pretending to be a worker in another department. Sometimes he was able to pull that off by learning intimate details of a company’s back-end systems.
“I had a friend who installed a remote access tool on a Netflix computer. When [the Netflix employee] was AFK–not at the computer–he could use that computer. From there he took a bunch of screenshots, and saw the [support] tool was called Obiwan.”
Cosmo couldn’t actually use Obiwan himself because he didn’t have a Netflix IP address. But that didn’t matter. He just needed to know what the back end looked like.
“You have to impersonate a Netflix agent. So you call up and say ‘Hey, my name is Derek. I’m from Netflix Canada and I’m having a technical difficulty with Obiwan. Can you look something up for me?’ Then you say the email, the name, the billing, and then you ask for the last four. Then you just call back and reset their password.”
And that’s the secret. When Cosmo calls a company pretending to be an employee, he doesn’t wait for them to ask for details. He tells them all the person’s data he has up front. If he knows three pieces of a puzzle and just needs the fourth, he gives them those first without waiting to be asked for them. That way he demonstrates a knowledge of the system, disarming the person on the other end of the line and making them less likely to question his authenticity.
Cosmo sometimes even provides details that he knows tech support doesn’t need. For example, if a tech support requires only the zip code on file, he’ll provide the full address anyway. It makes him appear more knowledgeable and less likely to be questioned. That’s classic social engineering.
“You can pretty much do it at any company–impersonate an agent,” he shrugs and smiles. “Most people will fall for it unless they’ve been trained not to. But most companies aren’t doing that.”
Some of his techniques are incredibly complicated and involve multiple levels of social engineering, like the method he developed for getting into PayPal.
The inside of a PayPal account is a trove of information for social engineers. Once logged in, you can see the last four digits of someone’s credit cards and bank accounts, and their current billing address. That information can, in turn, be used to obtain password resets on all sorts of other sites. More nefariously, once inside someone’s PayPal account, you can flat out rob them.
Cosmo explained exactly how it is done.
“You have to add a bank account. You can make a virtual bank account on eTrade.com with info from FakeNameGenerator.com.”
Wired verified that it’s possible to create online bank accounts with automatically generated information–although we were also required to enter a driver’s license number, which we got via a second site, using the information from FakeNameGenerator.
“You call PayPal, and you have to have the last four of a payment method. You can get that from Amazon or you can impersonate a PayPal agent. They access your account from the last four. You tell them you want to add a phone number, and you add a Google Voice number. And then you say, I also want to add a new bank account I just got. And they add that for you.
“Then you hang up, go to PayPal.com, and go to Reset My PayPal Account. It says send to a phone number and shows the last digits. You pick your Google Voice number, and then it [calls] your phone. You enter that, and you go to a new page of verification that says please enter your full bank account with routing number. You just add the bank account number you made with E-Trade. And once you click next, it prompts you to create a new password.”
Wired was able to replicate this method and receive PayPal password resets. After we disclosed the issue to PayPal, the company closed this security hole. PayPal’s director of communications, Anuj Nayar, told Wired this was a temporary issue caused by product testing that was accidentally left open and had now been closed.
Wired’s subsequent tests found this to be the case, although we could still add a phone number to an account, PayPal would no longer send a password reset to it until it had been verified by logging in.

Busted

Cosmo was still sleeping when the police arrived at his apartment. Officers and a detective with the Long Beach Police Department searched his home and seized three of his netbooks and his iPod Touch. They put him in handcuffs and refused to let him change clothes out of the shorts and t-shirt he’d been sleeping in the night before. Then they took him to the Los Padrinos Juvenile Hall, where he spent the next two days.
They raided his grandmother’s home, too.
“I was in the bathroom and I heard some guys talking,” she says. “When I opened up the bathroom door there was this cop standing right at the door. He stood right inside this door and it startled me. He took me by my arm and told me to come in and sit down. I sat down and the three cops were standing over there and they just stood there. I was startled and some cops walked by with Derek, and he was handcuffed.”
Cosmo suspects the raid was tied to UGNazi’s participation in the WHMCS credit card dump, when they dropped a half million credit card numbers on the open Web, and not the CloudFlare hack that ultimately landed UGNazi on the FBI’s hit list. Still, he expressed remorse for what had gone down with Prince and for people who were still having accounts compromised via methods he pioneered.
“I called Matthew Prince the night before [the hack],” Cosmo told me. “I was going to tell him about it. I called through AT&T relay and he hung up on me. I was just going to let him know, ‘Your site’s about to get hacked.’ Josh was going to do it anyway, but…”
Did Cosmo really try to warn Prince? Prince confirms that he did get several calls via an AT&T relay the night before. And while a warning may seem far fetched, it would not be completely out of character.
For example, I was hacked long after Cosmo was arrested and had lost his ability to do any more damage. Yet he managed to learn about how it was done and attempted to relay that information to me via Mikko Hypponen, whom we both follow on Twitter. It was too late, but, still, he made the effort.
And then there’s the question of why he’s speaking to me at all. Why he’s essentially incriminating himself before he goes to trial. He ultimately reached me via Phobia, the guy who hacked me. Phobia said Cosmo wanted to tell me about a specific AOL account hack that they wanted closed. From my first interaction with Cosmo, weeks ago, through today, he has maintained this was his motivation for talking.
The method Cosmo described for taking an AOL account away from its owner is distressingly simple. Worse, multiple hackers described the AOL exploit as ancient and well known. In short, it takes nothing more than someone’s name and address to take over their AOL email.
To get a password reset on a free AOL email or chat account, all one needs to give the over-the-phone tech-support worker is the first and last name and zip code on the account. For a paid account, AOL asks for either the address or the last four digits of the credit card on file.
Cosmo tells me this casually, while drinking water from a plastic bottle. I stare at him.
“Yeah…. that’s all you need to do.”
Wired was able to confirm this and received password resets on both paid and free accounts, despite being being unable to answer account security questions. In some cases, we even deliberately provided incorrect answers. After we informed AOL, it quickly halted issuing password resets over the phone.
“We looked into the matter and found that there was, in fact, a gap in our phone support processes,” AOL’s Senior Vice President for Mail and Mobile David Tempkin informed Wired via email. “We addressed the problem immediately, and as of today, AOL users are better protected — it’s no longer possible to hack into an account via a phone-based password reset.”
As a direct result of Cosmo coming forward, PayPal and Aol changed their account security procedures. For me, this only adds to his enigma.
I wonder how much of everything else Cosmo has told me is true. The only thing I am certain of is that online security is an illusion. But I think he is being honest now. I think he’s genuinely remorseful and just wants all these gaping account holes, many of which he found or helped publicize, closed at last before anyone else has their identity stolen, or the SWAT team sent to their door. That’s what I believe, at least.
But then, he’s a very, very good liar.