分享看到的一篇关于土共网络间谍对美国公司的入侵的文章

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供大家参考。看来老美的指责并非完全编造,也不是杯弓蛇影。 本人是IT菜鸟。希望这篇文章对大家有用。

Wire: Bloomberg News (BN) Date: May 2 2013  6:00:00
China Cyberspies Outwitting U.S. Stealing Vital Military Secrets


By Michael Riley and Ben Elgin
     May 2 (Bloomberg) -- Among defense contractors, QinetiQ
North America is known for spy-world connections and an eye-
popping product line. Its contributions to national security
include secret satellites, drones, and software used by U.S.
special forces in Afghanistan and the Middle East.
     Former CIA Director George Tenet was a director of the
company from 2006 to 2008 and former Pentagon spy chief Stephen
Cambone heads a major division. Its U.K. parent was created as a
spinoff of a government weapons laboratory that inspired Q’s lab
in Ian Fleming’s James Bond thrillers, a connection QinetiQ
(pronounced kin-EH-tic) still touts.
     QinetiQ’s espionage expertise didn’t keep Chinese cyber-
spies from outwitting the company. In a three-year operation,
hackers linked to China’s military infiltrated QinetiQ’s
computers and compromised most if not all of the company’s
research. At one point, they logged into the company’s network
by taking advantage of a security flaw identified months earlier
and never fixed.
     “We found traces of the intruders in many of their
divisions and across most of their product lines,” said
Christopher Day, until February a senior vice president for
Verizon Communications Inc.’s Terremark security division, which
was hired twice by QinetiQ to investigate the break-ins. “There
was virtually no place we looked where we didn’t find them.”

                         Cyber Pillage

     QinetiQ was only one target in a broader cyber pillage.
Beginning at least as early as 2007, Chinese computer spies
raided the databanks of almost every major U.S. defense
contractor and made off with some of the country’s most closely
guarded technological secrets, according to two former Pentagon
officials who asked not to be named because damage assessments
of the incidents remain classified.
     As the White House moves to confront China over its theft
of U.S. technology through hacking, policy makers are faced with
the question of how much damage has already been done. During
their multiyear assault on defense contractors, the spies stole
several terabytes -- equal to hundreds of millions of pages --of
documents and data on weapons programs, dwarfing in sheer
quantity any theft of Cold War secrets. The QinetiQ hack may
have compromised information vital to national security, such as
the deployment and capabilities of the combat helicopter fleet.
     “The line forms to the left when it comes to defense
contractors that have been hacked,” said James Lewis, a senior
fellow in cyber security at the Center for Strategic and
International Studies in Washington. “The damage has been
significant.”

                         Systems Hacked

     A few of the attacks have become public, including the 2007
theft from Lockheed Martin Corp. of technology related to the F-
35, the most advanced U.S. fighter jet. Intelligence officials
say the damage is far more extensive than the limited public
accounting suggests, and that China-based hackers have acquired
data on a large number of major weapons systems and many minor
ones. One former intelligence official described internal
Pentagon discussions over whether another Lockheed Martin
fighter jet, the F-22 Raptor, could safely be deployed in
combat, because several subcontractors had been hacked.
     In 2007-2008, the Pentagon gave secret briefings to about
30 defense companies alerting them to the aggressive spying
effort and providing data to help defend against it, according
to a person familiar with the process. The person did not know
whether QinetiQ received the classified intelligence.
     Investigators eventually identified the Shanghai-based
hackers that broke into QinetiQ as a crack team, nicknamed the
Comment Crew by security experts, which has also hit major
corporations and political figures, including the 2008
presidential campaigns of Barack Obama and John McCain. At least
one other Chinese hacking team also may have been involved,
according to a person familiar with the investigation.

                          141 Attacks

     In a Feb. 18 report, Mandiant, an Alexandria, Virginia-
based security firm, attributed 141 major cyber attacks to the
Comment Crew without naming the targets. Mandiant identified the
Comment Crew as the People’s Liberation Army Unit 61398, which
is similar in some respects to the U.S. National Security
Agency. Mandiant’s report prompted Tom Donilon, President
Obama’s national security adviser, to call on China to stop the
hacking of U.S. companies.
     The spying on QinetiQ and other defense contractors appears
aimed at helping China leapfrog the U.S.’s technologically-
advanced military, foregoing years of research and development
that would have cost billions of dollars, according to Michael
Hayden, former director of the CIA.
     China’s military may also have stolen programming code and
design details that it could use to disable some of the most
sophisticated U.S. weaponry.

                      ‘Major Embarrassment’

     The lengthy spying operation on QinetiQ jeopardized the
company’s sensitive technology involving drones, satellites, the
U.S. Army’s combat helicopter fleet, and military robotics, both
already-deployed systems and those still in development,
according to internal investigations. Jennifer Pickett, a
spokesman for QinetiQ, declined to comment as part of a general
policy not to discuss security measures.
     “God forbid we get into a conflict with China but if we
did we could face a major embarrassment, where we try out all
these sophisticated weapons systems and they don’t work,” said
Richard Clarke, former special adviser to President George W.
Bush on cyber security.
     The spies’ trail at QinetiQ begins in late 2007, and so do
the company’s mistakes. QinetiQ’s travails are documented in
hundreds of unvarnished e-mails and dozens of reports that were
never meant to be public, part of a cache that was leaked in
2011 by the group Anonymous after it hacked HBGary Inc., a
Sacramento-based computer security firm hired by QinetiQ the
previous year.

                       Team Outmaneuvered

     The e-mails and reports are authentic, according to former
HBGary executives and Day. Day agreed to an interview limited to
the investigation’s findings because the documents had already
become public.
     By reviewing the documents with security experts and
interviewing more than a dozen people familiar with the QinetiQ
breaches, Bloomberg News reconstructed how the hackers
outmaneuvered QinetiQ’s internal security team and at least five
companies brought in to help salvage the situation.
     Headquartered in a glass-and-steel office tower in McLean,
Virginia, QinetiQ’s U.S. subsidiary is a boutique arms maker,
less than one-tenth the size of industry giants like Lockheed or
Northrop Grumman Corp. It has specialized in fields expected to
grow as the rest of the Pentagon budget shrinks, including
drones, robotics, software and high-speed computing. A 2012 want
ad for QinetiQ’s Albuquerque facility solicited a programmer to
work on a “satellite-based global monitoring system” and
limited candidates to those with top secret clearances only.

                          Stolen Data

     In December 2007, an agent from the Naval Criminal
Investigative Service contacted the company’s small security
team and notified them that two people working in McLean were
losing confidential data from their laptop computers, according
to an internal report. The agency had stumbled upon the stolen
data as part of another investigation and the alert was a
courtesy.
     The San Diego-based agent didn’t provide the identity of
the hackers, who had been tracked by U.S. intelligence since at
least 2002, or the crucial -- but classified -- fact that they
were hitting other defense contractors. The company wouldn’t
find out who its attackers were for two more years.
     QinetiQ put strict limits on the investigation.
     “They just felt like it was this limited little thing,
like they’d picked up some virus,” said Brian Dykstra, a
forensics expert based in Columbia, Maryland, which QinetiQ
hired to conduct the investigation.

                            Four Days

     Dykstra was given only four days to complete his work. He
said the company didn’t give him the time or data necessary to
determine whether more employees had been successfully targeted,
a standard precaution. In his final report, Dykstra warned that
QinetiQ “is likely not seeing the full extent” of the
intrusion.
     Evidence surfaced almost immediately that he was right, as
the attacks continued. On Jan. 7, 2008, NASA alerted the company
that hackers had tried to infiltrate the space agency from one
of QinetiQ’s computers.
     QinetiQ treated a series of attacks over the next several
months as isolated incidents. The hackers followed a more
meticulous strategy: In the first 2 1/2 years, they gathered
more than 13,000 internal passwords and raided servers that
could give them detailed information about the company and how
it was organized -- data they would use to devastating effect.

                         Security Holes

     More investigations uncovered more security holes. In 2008,
a security team found that QinetiQ’s internal corporate network
could be accessed from a Waltham, Massachusetts, parking lot
using an unsecured Wi-Fi connection. The same investigation
discovered that Russian hackers had been stealing secrets from
QinetiQ for more than 2 1/2 years through a secretary’s
computer, which they had rigged to send the data directly to a
server in the Russian Federation, according to an internal
investigation.
     QinetiQ’s executives in the meantime fretted about rising
costs.
     “You could spend all your resources chasing such things as
this,” William Ribich, the former president of QinetiQ’s
Technology Solutions Group, said in an interview in January.
Ribich, who retired in November 2009, shortly after the
discovery of a major data theft, said he needed to balance the
uncertain risk that the hackers could use what they stole
against a growing shopping list of security products and
consulting fees.
     “You finally have to reach a point where you say ’let’s
move on,”’ he said.

                          Vast Control

     China’s hackers in fact zeroed in first on Ribich’s
division, based in Waltham, and specifically on QinetiQ’s drone
and robotics technology. Internal reports leaked by Anonymous
chronicle a breach at TSG in February 2008, followed by another
attempt in March of that year. By 2009, the hackers had almost
complete control over TSG’s computers, the documents show.
     Over one stretch in 2009, the spies spent 251 days raiding
at least 151 machines, including laptops and servers, cataloging
TSG’s source code and engineering data. The hackers dribbled
data out of the network in small packets to avoid detection,
managing to get away with 20 gigabytes before they were finally
stopped, according to an internal damage assessment.
     The stolen cache included highly sensitive military
technology and was equivalent in size to 1.3 million pages of
documents or more than 3.3 million pages of Microsoft Excel
spreadsheets.

                         Secrets ‘Gone’

     “All their code and trade secrets are gone,” Phil
Wallisch, senior security engineer at HBGary, wrote in an e-mail
after being briefed on the loss by the company.
     It was about to get much worse.
     While QinetiQ’s team tripped from crisis to crisis, the
hackers honed their skills. They were next spotted in March
2010, after signing on with the stolen password of a network
administrator based in Albuquerque, New Mexico, Darren Back.
     The hackers logged on through the company’s remote access
system, just like any employee. It was a trick they were able to
use only because QinetiQ didn’t employ two-factor
authentication, a simple device that generates a unique code
employees enter, along with their usual password, anytime they
work from home.
     The problem had been spotted months earlier in a security
review. Mandiant, which worked on several TSG breaches and
performed the test, recommended a relatively inexpensive fix.
The advice was ignored, according to a person familiar with the
report.

                        Digital Secrets

     In four days of furious activity, the hackers rifled at
least 14 servers, taking particular interest in the company’s
Pittsburgh location, which specialized in advanced robotics
design. The Comment Group also used Back’s password to raid the
computer of QinetiQ’s Huntsville, Alabama-based technology
control officer, which contained an inventory of highly
sensitive weapons-systems technology and source code throughout
the company. The spies had got their hands on a map to all of
QinetiQ’s digital secrets.
     They also had begun to broaden their attack. As evidence
mounted that the hackers had moved to divisions beyond TSG,
QinetiQ hired two outside firms in April 2010 -- Terremark and a
relatively new start up called HBGary, headed by Greg Hoglund, a
former hacker turned security expert.
     HBGary installed specialized software on more than 1,900
computers, then scanned the machines for snippets of malicious
code. Glitches surfaced almost immediately. The software
wouldn’t load on at least a third of the computers, and even
where it did, it missed some that the hackers’ spyware was known
to have infected, according to internal HBGary e-mails.

                          Wasted Time

     Matthew Anglin, an information-security principal at
QinetiQ, whose job was to coordinate the two investigations,
fretted that he had no idea what was happening in his own
network. He complained that the expensive outside experts didn’t
seem to have a handle on what was going on, and wasted time
tracing innocuous if unauthorized software.
     The consultants also squabbled. HBGary complained in one
report that Terremark was withholding vital information.
Terremark countered that it appeared the hackers knew HBGary was
hunting them and were using its technology to delete evidence of
their presence on machines.
     “They think we tipped off the attackers,” Wallisch,
HBGary’s principal investigator on the project, wrote in an e-
mail.

                          Every Corner

     The security teams found evidence that the hackers had
burrowed into almost every corner of QinetiQ’s U.S. operations,
including production facilities and engineering labs in St.
Louis, Pittsburgh, Long Beach, Mississippi, Huntsville, Alabama
and Albuquerque, New Mexico, where QinetiQ engineers work on
satellite-based espionage, among other projects.
     By the middle of June 2010, after weeks of intense work,
the investigators believed they had cleaned QinetiQ’s networks
and began wrapping up.
     The calm lasted a little more than two months. In early
September, the FBI called QinetiQ with evidence that the defense
contractor was again losing data, according to e-mails and a
person involved in the probe. Anglin messaged both HBGary and
Terremark, asking how quickly their teams could return.
     Within hours of their arrival, the investigators again
began finding malicious software, or malware, in computers
throughout the company’s North American divisions. Some of it
had been there since 2009.

                        Software Deleted

     It began to dawn on the security teams that the hackers had
established a near permanent presence in the defense
contractor’s computers, mining new information almost as soon as
it was written onto hard drives. “Oh yeah...they are f’d,”
Wallisch wrote to Hoglund in September.
     Investigators also had to contend with frustrated QinetiQ
employees. Upset about how much computer power the HBGary
detection software was consuming, workers began deleting it from
their computers with the approval of the company’s information
technology staff.
     As the hunt continued, more clues surfaced about what
secrets the spies were after. The hunters’ digital footprints
were found on the computers of QinetiQ’s chief operating
officer, a division vice president and dozens of engineers and
software architects, including several with classified
clearances.

                        Military Robots

     Among the victims was a specialist in the embedded software
on microchips that control the company’s military robots, which
would help in China’s own robot-building program, said Noel
Sharkey, a drones and robotics expert at Britain’s Sheffield
University. The PLA unveiled a bomb disposal robot in April 2012
similar to QinetiQ’s Dragon Runner.
     The chip architecture could also help China test ways to
take over or defeat U.S. robots or aerial drones, Sharkey said.
     “You could set them up in a simulation board and hack into
them,” he said. “That’s standard stuff.”
     The spies also took an interest in engineers working on an
innovative maintenance program for the Army’s combat helicopter
fleet. They targeted at least 17 people working on what’s known
as Condition Based Maintenance, which uses on-board sensors to
collect data on Apache and Blackhawk helicopters deployed around
the world, according to experts familiar with the program.
     The CBM databases contain highly sensitive information
including the aircrafts’ individual PIN numbers, and could have
provided the hackers with a view of the deployment, performance,
flight hours, durability and other critical information of every
U.S. combat helicopter from Alaska to Afghanistan, according to
Abdel Bayoumi, who heads the Condition Based Maintenance Center
at the University of South Carolina.

                        Redstone Arsenal

     The hackers also may have used QinetiQ to break into the
Army’s Redstone Arsenal through a network shared with QinetiQ’s
engineers in nearby Huntsville. A breach of the base, home of
the Army’s Aviation and Missile Command, was linked by military
investigators back to QinetiQ, according to a person familiar
with the investigation.
     It wasn’t the only time the hackers used the same back-door
approach to federal computers. The same person said that as
recently as last year, federal agents were looking into a breach
at a QinetiQ cyber-security unit, which they suspected Chinese
hackers were using in attacks against government targets.
     The security lapses at QinetiQ led to investigations by
several federal agencies, including the FBI, Pentagon, and Naval
Criminal Investigative Service, according to two people
involved, who didn’t know the final outcome of the probes. The
State Department, which has the power to revoke QinetiQ’s
charter to handle restricted military technology if it finds
negligence, has yet to take any action against the company.

                        ‘Learning Curve’

     “In this case it looks like years go by without seeing any
learning curve and that’s what’s scary,” said Steven Aftergood,
who directs the Project on Government Secrecy at the Federation
of American Scientists. “The company is responsible for its own
failures, but the government is responsible for the inadequacy
of its response.”
     QinetiQ’s U.S. operations are overseen by a proxy board
that includes Riley Mixson, the Navy’s former air-warfare chief.
The board was briefed several times about the hacking and the
investigations. Mixson said that “everything was duly
reported” and then hung up the phone. Tenet declined to
comment.
     The investigations didn’t affect the company’s ability to
win government contracts, even to provide cyber-security
services to federal agencies.

                        Contract Awarded

     In May 2012, QinetiQ received a $4.7 million cyber-security
contract from the U.S. Transportation Department, which includes
protection of the country’s critical transport infrastructure.
     “When it comes to cyber security QinetiQ couldn’t grab
their ass with both hands, so it cracks me up that they won,”
Bob Slapnik, vice president at HBGary, wrote after QinetiQ
received a grant from the Pentagon in 2010 to advise it on ways
to counter cyber espionage.
     In the fall of 2010, Terremark sent a report to Anglin
concluding that QinetiQ had been targeted by the Comment Crew
since 2007 and that the hackers had been operating continuously
in their networks since at least 2009. The report was part of
the trove of documents leaked by Anonymous.
     In that time, the hackers had gained almost complete
control over the company’s network. They had operated unhindered
for months-long stretches and they had implanted multiple,
hidden communications channels to extract data. Privately, the
investigators concluded that the spies had gotten everything
they wanted from QinetiQ’s computers.
     “My feeling is that if an attacker has been in your
environment for years, your data is gone,” Wallisch wrote in an
e-mail to a colleague in December 2010, a few weeks before
HBGary itself was hacked and the record stops.
     “Everything about your business is known, cataloged,
analyzed, by your enemy,” Wallisch wrote. “I don’t feel a
sense of urgency anymore.”

For Related News and Information:
China Boosts Defense Spending as Military Modernizes Its Arsenal
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Chinese Spying Erodes U.S. Space Technology Lead, Agencies Say
NSN M2P6JU6KLVR4 <GO>
Obama Orders Cybersecurity Standards for U.S. Infrastructure
NSN MI51QQ6K50YK <GO>
Computer security news: NI ITSECURE <GO>
Top China news: TOP CHINA <GO>
Top stories: TOP <GO>

--Editors: Daniel Golden, Lisa Wolfson

To contact the reporters on this story:
Michael Riley in Washington at +1-202-624-1982 or
michaelriley@bloomberg.net;
Ben Elgin in San Francisco at +1-415-617-7022 or
belgin@bloomberg.net

To contact the editor responsible for this story:
Daniel Golden at +1-617-210-4610 or
dlgolden@bloomberg.net

供大家参考。看来老美的指责并非完全编造,也不是杯弓蛇影。 本人是IT菜鸟。希望这篇文章对大家有用。

Wire: Bloomberg News (BN) Date: May 2 2013  6:00:00
China Cyberspies Outwitting U.S. Stealing Vital Military Secrets


By Michael Riley and Ben Elgin
     May 2 (Bloomberg) -- Among defense contractors, QinetiQ
North America is known for spy-world connections and an eye-
popping product line. Its contributions to national security
include secret satellites, drones, and software used by U.S.
special forces in Afghanistan and the Middle East.
     Former CIA Director George Tenet was a director of the
company from 2006 to 2008 and former Pentagon spy chief Stephen
Cambone heads a major division. Its U.K. parent was created as a
spinoff of a government weapons laboratory that inspired Q’s lab
in Ian Fleming’s James Bond thrillers, a connection QinetiQ
(pronounced kin-EH-tic) still touts.
     QinetiQ’s espionage expertise didn’t keep Chinese cyber-
spies from outwitting the company. In a three-year operation,
hackers linked to China’s military infiltrated QinetiQ’s
computers and compromised most if not all of the company’s
research. At one point, they logged into the company’s network
by taking advantage of a security flaw identified months earlier
and never fixed.
     “We found traces of the intruders in many of their
divisions and across most of their product lines,” said
Christopher Day, until February a senior vice president for
Verizon Communications Inc.’s Terremark security division, which
was hired twice by QinetiQ to investigate the break-ins. “There
was virtually no place we looked where we didn’t find them.”

                         Cyber Pillage

     QinetiQ was only one target in a broader cyber pillage.
Beginning at least as early as 2007, Chinese computer spies
raided the databanks of almost every major U.S. defense
contractor and made off with some of the country’s most closely
guarded technological secrets, according to two former Pentagon
officials who asked not to be named because damage assessments
of the incidents remain classified.
     As the White House moves to confront China over its theft
of U.S. technology through hacking, policy makers are faced with
the question of how much damage has already been done. During
their multiyear assault on defense contractors, the spies stole
several terabytes -- equal to hundreds of millions of pages --of
documents and data on weapons programs, dwarfing in sheer
quantity any theft of Cold War secrets. The QinetiQ hack may
have compromised information vital to national security, such as
the deployment and capabilities of the combat helicopter fleet.
     “The line forms to the left when it comes to defense
contractors that have been hacked,” said James Lewis, a senior
fellow in cyber security at the Center for Strategic and
International Studies in Washington. “The damage has been
significant.”

                         Systems Hacked

     A few of the attacks have become public, including the 2007
theft from Lockheed Martin Corp. of technology related to the F-
35, the most advanced U.S. fighter jet. Intelligence officials
say the damage is far more extensive than the limited public
accounting suggests, and that China-based hackers have acquired
data on a large number of major weapons systems and many minor
ones. One former intelligence official described internal
Pentagon discussions over whether another Lockheed Martin
fighter jet, the F-22 Raptor, could safely be deployed in
combat, because several subcontractors had been hacked.
     In 2007-2008, the Pentagon gave secret briefings to about
30 defense companies alerting them to the aggressive spying
effort and providing data to help defend against it, according
to a person familiar with the process. The person did not know
whether QinetiQ received the classified intelligence.
     Investigators eventually identified the Shanghai-based
hackers that broke into QinetiQ as a crack team, nicknamed the
Comment Crew by security experts, which has also hit major
corporations and political figures, including the 2008
presidential campaigns of Barack Obama and John McCain. At least
one other Chinese hacking team also may have been involved,
according to a person familiar with the investigation.

                          141 Attacks

     In a Feb. 18 report, Mandiant, an Alexandria, Virginia-
based security firm, attributed 141 major cyber attacks to the
Comment Crew without naming the targets. Mandiant identified the
Comment Crew as the People’s Liberation Army Unit 61398, which
is similar in some respects to the U.S. National Security
Agency. Mandiant’s report prompted Tom Donilon, President
Obama’s national security adviser, to call on China to stop the
hacking of U.S. companies.
     The spying on QinetiQ and other defense contractors appears
aimed at helping China leapfrog the U.S.’s technologically-
advanced military, foregoing years of research and development
that would have cost billions of dollars, according to Michael
Hayden, former director of the CIA.
     China’s military may also have stolen programming code and
design details that it could use to disable some of the most
sophisticated U.S. weaponry.

                      ‘Major Embarrassment’

     The lengthy spying operation on QinetiQ jeopardized the
company’s sensitive technology involving drones, satellites, the
U.S. Army’s combat helicopter fleet, and military robotics, both
already-deployed systems and those still in development,
according to internal investigations. Jennifer Pickett, a
spokesman for QinetiQ, declined to comment as part of a general
policy not to discuss security measures.
     “God forbid we get into a conflict with China but if we
did we could face a major embarrassment, where we try out all
these sophisticated weapons systems and they don’t work,” said
Richard Clarke, former special adviser to President George W.
Bush on cyber security.
     The spies’ trail at QinetiQ begins in late 2007, and so do
the company’s mistakes. QinetiQ’s travails are documented in
hundreds of unvarnished e-mails and dozens of reports that were
never meant to be public, part of a cache that was leaked in
2011 by the group Anonymous after it hacked HBGary Inc., a
Sacramento-based computer security firm hired by QinetiQ the
previous year.

                       Team Outmaneuvered

     The e-mails and reports are authentic, according to former
HBGary executives and Day. Day agreed to an interview limited to
the investigation’s findings because the documents had already
become public.
     By reviewing the documents with security experts and
interviewing more than a dozen people familiar with the QinetiQ
breaches, Bloomberg News reconstructed how the hackers
outmaneuvered QinetiQ’s internal security team and at least five
companies brought in to help salvage the situation.
     Headquartered in a glass-and-steel office tower in McLean,
Virginia, QinetiQ’s U.S. subsidiary is a boutique arms maker,
less than one-tenth the size of industry giants like Lockheed or
Northrop Grumman Corp. It has specialized in fields expected to
grow as the rest of the Pentagon budget shrinks, including
drones, robotics, software and high-speed computing. A 2012 want
ad for QinetiQ’s Albuquerque facility solicited a programmer to
work on a “satellite-based global monitoring system” and
limited candidates to those with top secret clearances only.

                          Stolen Data

     In December 2007, an agent from the Naval Criminal
Investigative Service contacted the company’s small security
team and notified them that two people working in McLean were
losing confidential data from their laptop computers, according
to an internal report. The agency had stumbled upon the stolen
data as part of another investigation and the alert was a
courtesy.
     The San Diego-based agent didn’t provide the identity of
the hackers, who had been tracked by U.S. intelligence since at
least 2002, or the crucial -- but classified -- fact that they
were hitting other defense contractors. The company wouldn’t
find out who its attackers were for two more years.
     QinetiQ put strict limits on the investigation.
     “They just felt like it was this limited little thing,
like they’d picked up some virus,” said Brian Dykstra, a
forensics expert based in Columbia, Maryland, which QinetiQ
hired to conduct the investigation.

                            Four Days

     Dykstra was given only four days to complete his work. He
said the company didn’t give him the time or data necessary to
determine whether more employees had been successfully targeted,
a standard precaution. In his final report, Dykstra warned that
QinetiQ “is likely not seeing the full extent” of the
intrusion.
     Evidence surfaced almost immediately that he was right, as
the attacks continued. On Jan. 7, 2008, NASA alerted the company
that hackers had tried to infiltrate the space agency from one
of QinetiQ’s computers.
     QinetiQ treated a series of attacks over the next several
months as isolated incidents. The hackers followed a more
meticulous strategy: In the first 2 1/2 years, they gathered
more than 13,000 internal passwords and raided servers that
could give them detailed information about the company and how
it was organized -- data they would use to devastating effect.

                         Security Holes

     More investigations uncovered more security holes. In 2008,
a security team found that QinetiQ’s internal corporate network
could be accessed from a Waltham, Massachusetts, parking lot
using an unsecured Wi-Fi connection. The same investigation
discovered that Russian hackers had been stealing secrets from
QinetiQ for more than 2 1/2 years through a secretary’s
computer, which they had rigged to send the data directly to a
server in the Russian Federation, according to an internal
investigation.
     QinetiQ’s executives in the meantime fretted about rising
costs.
     “You could spend all your resources chasing such things as
this,” William Ribich, the former president of QinetiQ’s
Technology Solutions Group, said in an interview in January.
Ribich, who retired in November 2009, shortly after the
discovery of a major data theft, said he needed to balance the
uncertain risk that the hackers could use what they stole
against a growing shopping list of security products and
consulting fees.
     “You finally have to reach a point where you say ’let’s
move on,”’ he said.

                          Vast Control

     China’s hackers in fact zeroed in first on Ribich’s
division, based in Waltham, and specifically on QinetiQ’s drone
and robotics technology. Internal reports leaked by Anonymous
chronicle a breach at TSG in February 2008, followed by another
attempt in March of that year. By 2009, the hackers had almost
complete control over TSG’s computers, the documents show.
     Over one stretch in 2009, the spies spent 251 days raiding
at least 151 machines, including laptops and servers, cataloging
TSG’s source code and engineering data. The hackers dribbled
data out of the network in small packets to avoid detection,
managing to get away with 20 gigabytes before they were finally
stopped, according to an internal damage assessment.
     The stolen cache included highly sensitive military
technology and was equivalent in size to 1.3 million pages of
documents or more than 3.3 million pages of Microsoft Excel
spreadsheets.

                         Secrets ‘Gone’

     “All their code and trade secrets are gone,” Phil
Wallisch, senior security engineer at HBGary, wrote in an e-mail
after being briefed on the loss by the company.
     It was about to get much worse.
     While QinetiQ’s team tripped from crisis to crisis, the
hackers honed their skills. They were next spotted in March
2010, after signing on with the stolen password of a network
administrator based in Albuquerque, New Mexico, Darren Back.
     The hackers logged on through the company’s remote access
system, just like any employee. It was a trick they were able to
use only because QinetiQ didn’t employ two-factor
authentication, a simple device that generates a unique code
employees enter, along with their usual password, anytime they
work from home.
     The problem had been spotted months earlier in a security
review. Mandiant, which worked on several TSG breaches and
performed the test, recommended a relatively inexpensive fix.
The advice was ignored, according to a person familiar with the
report.

                        Digital Secrets

     In four days of furious activity, the hackers rifled at
least 14 servers, taking particular interest in the company’s
Pittsburgh location, which specialized in advanced robotics
design. The Comment Group also used Back’s password to raid the
computer of QinetiQ’s Huntsville, Alabama-based technology
control officer, which contained an inventory of highly
sensitive weapons-systems technology and source code throughout
the company. The spies had got their hands on a map to all of
QinetiQ’s digital secrets.
     They also had begun to broaden their attack. As evidence
mounted that the hackers had moved to divisions beyond TSG,
QinetiQ hired two outside firms in April 2010 -- Terremark and a
relatively new start up called HBGary, headed by Greg Hoglund, a
former hacker turned security expert.
     HBGary installed specialized software on more than 1,900
computers, then scanned the machines for snippets of malicious
code. Glitches surfaced almost immediately. The software
wouldn’t load on at least a third of the computers, and even
where it did, it missed some that the hackers’ spyware was known
to have infected, according to internal HBGary e-mails.

                          Wasted Time

     Matthew Anglin, an information-security principal at
QinetiQ, whose job was to coordinate the two investigations,
fretted that he had no idea what was happening in his own
network. He complained that the expensive outside experts didn’t
seem to have a handle on what was going on, and wasted time
tracing innocuous if unauthorized software.
     The consultants also squabbled. HBGary complained in one
report that Terremark was withholding vital information.
Terremark countered that it appeared the hackers knew HBGary was
hunting them and were using its technology to delete evidence of
their presence on machines.
     “They think we tipped off the attackers,” Wallisch,
HBGary’s principal investigator on the project, wrote in an e-
mail.

                          Every Corner

     The security teams found evidence that the hackers had
burrowed into almost every corner of QinetiQ’s U.S. operations,
including production facilities and engineering labs in St.
Louis, Pittsburgh, Long Beach, Mississippi, Huntsville, Alabama
and Albuquerque, New Mexico, where QinetiQ engineers work on
satellite-based espionage, among other projects.
     By the middle of June 2010, after weeks of intense work,
the investigators believed they had cleaned QinetiQ’s networks
and began wrapping up.
     The calm lasted a little more than two months. In early
September, the FBI called QinetiQ with evidence that the defense
contractor was again losing data, according to e-mails and a
person involved in the probe. Anglin messaged both HBGary and
Terremark, asking how quickly their teams could return.
     Within hours of their arrival, the investigators again
began finding malicious software, or malware, in computers
throughout the company’s North American divisions. Some of it
had been there since 2009.

                        Software Deleted

     It began to dawn on the security teams that the hackers had
established a near permanent presence in the defense
contractor’s computers, mining new information almost as soon as
it was written onto hard drives. “Oh yeah...they are f’d,”
Wallisch wrote to Hoglund in September.
     Investigators also had to contend with frustrated QinetiQ
employees. Upset about how much computer power the HBGary
detection software was consuming, workers began deleting it from
their computers with the approval of the company’s information
technology staff.
     As the hunt continued, more clues surfaced about what
secrets the spies were after. The hunters’ digital footprints
were found on the computers of QinetiQ’s chief operating
officer, a division vice president and dozens of engineers and
software architects, including several with classified
clearances.

                        Military Robots

     Among the victims was a specialist in the embedded software
on microchips that control the company’s military robots, which
would help in China’s own robot-building program, said Noel
Sharkey, a drones and robotics expert at Britain’s Sheffield
University. The PLA unveiled a bomb disposal robot in April 2012
similar to QinetiQ’s Dragon Runner.
     The chip architecture could also help China test ways to
take over or defeat U.S. robots or aerial drones, Sharkey said.
     “You could set them up in a simulation board and hack into
them,” he said. “That’s standard stuff.”
     The spies also took an interest in engineers working on an
innovative maintenance program for the Army’s combat helicopter
fleet. They targeted at least 17 people working on what’s known
as Condition Based Maintenance, which uses on-board sensors to
collect data on Apache and Blackhawk helicopters deployed around
the world, according to experts familiar with the program.
     The CBM databases contain highly sensitive information
including the aircrafts’ individual PIN numbers, and could have
provided the hackers with a view of the deployment, performance,
flight hours, durability and other critical information of every
U.S. combat helicopter from Alaska to Afghanistan, according to
Abdel Bayoumi, who heads the Condition Based Maintenance Center
at the University of South Carolina.

                        Redstone Arsenal

     The hackers also may have used QinetiQ to break into the
Army’s Redstone Arsenal through a network shared with QinetiQ’s
engineers in nearby Huntsville. A breach of the base, home of
the Army’s Aviation and Missile Command, was linked by military
investigators back to QinetiQ, according to a person familiar
with the investigation.
     It wasn’t the only time the hackers used the same back-door
approach to federal computers. The same person said that as
recently as last year, federal agents were looking into a breach
at a QinetiQ cyber-security unit, which they suspected Chinese
hackers were using in attacks against government targets.
     The security lapses at QinetiQ led to investigations by
several federal agencies, including the FBI, Pentagon, and Naval
Criminal Investigative Service, according to two people
involved, who didn’t know the final outcome of the probes. The
State Department, which has the power to revoke QinetiQ’s
charter to handle restricted military technology if it finds
negligence, has yet to take any action against the company.

                        ‘Learning Curve’

     “In this case it looks like years go by without seeing any
learning curve and that’s what’s scary,” said Steven Aftergood,
who directs the Project on Government Secrecy at the Federation
of American Scientists. “The company is responsible for its own
failures, but the government is responsible for the inadequacy
of its response.”
     QinetiQ’s U.S. operations are overseen by a proxy board
that includes Riley Mixson, the Navy’s former air-warfare chief.
The board was briefed several times about the hacking and the
investigations. Mixson said that “everything was duly
reported” and then hung up the phone. Tenet declined to
comment.
     The investigations didn’t affect the company’s ability to
win government contracts, even to provide cyber-security
services to federal agencies.

                        Contract Awarded

     In May 2012, QinetiQ received a $4.7 million cyber-security
contract from the U.S. Transportation Department, which includes
protection of the country’s critical transport infrastructure.
     “When it comes to cyber security QinetiQ couldn’t grab
their ass with both hands, so it cracks me up that they won,”
Bob Slapnik, vice president at HBGary, wrote after QinetiQ
received a grant from the Pentagon in 2010 to advise it on ways
to counter cyber espionage.
     In the fall of 2010, Terremark sent a report to Anglin
concluding that QinetiQ had been targeted by the Comment Crew
since 2007 and that the hackers had been operating continuously
in their networks since at least 2009. The report was part of
the trove of documents leaked by Anonymous.
     In that time, the hackers had gained almost complete
control over the company’s network. They had operated unhindered
for months-long stretches and they had implanted multiple,
hidden communications channels to extract data. Privately, the
investigators concluded that the spies had gotten everything
they wanted from QinetiQ’s computers.
     “My feeling is that if an attacker has been in your
environment for years, your data is gone,” Wallisch wrote in an
e-mail to a colleague in December 2010, a few weeks before
HBGary itself was hacked and the record stops.
     “Everything about your business is known, cataloged,
analyzed, by your enemy,” Wallisch wrote. “I don’t feel a
sense of urgency anymore.”

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--Editors: Daniel Golden, Lisa Wolfson

To contact the reporters on this story:
Michael Riley in Washington at +1-202-624-1982 or
michaelriley@bloomberg.net;
Ben Elgin in San Francisco at +1-415-617-7022 or
belgin@bloomberg.net

To contact the editor responsible for this story:
Daniel Golden at +1-617-210-4610 or
dlgolden@bloomberg.net