By Joseph Menn
SAN FRANCISCO (Reuters) - The U.S. National Security Agency has figured out how to hide spying software deep within hard drives made by Western Digital, Seagate, Toshiba and other top manufacturers, giving the agency the means to eavesdrop on the majority of the world's computers, according to cyber researchers and former operatives.
That long-sought and closely guarded ability was part of a cluster of spying programs discovered by Kaspersky Lab, the Moscow-based security software maker that has exposed a series of Western cyberespionage operations.
Kaspersky said it found personal computers in 30 countries infected with one or more of the spying programs, with the most infections seen in Iran, followed by Russia, Pakistan, Afghanistan, China, Mali, Syria, Yemen and Algeria. The targets included government and military institutions, telecommunication companies, banks, energy companies, nuclear researchers, media, and Islamic activists, Kaspersky said. (http://reut.rs/1L5knm0)
Another former intelligence operative confirmed that the NSA had developed the prized technique of concealing spyware in hard drives, but said he did not know which spy efforts relied on it.
Kaspersky published the technical details of its research on Monday, which should help infected institutions detect the spying programs, some of which trace back as far as 2001.
The disclosure could further hurt the NSA's surveillance abilities, already damaged by massive leaks by former contractor Edward Snowden. Snowden's revelations have hurt the United States' relations with some allies and slowed the sales of U.S. technology products abroad.
The exposure of these new spying tools could lead to greater backlash against Western technology, particularly in countries such as China, which is already drafting regulations that would require most bank technology suppliers to proffer copies of their software code for inspection.
TECHNOLOGICAL BREAKTHROUGH
According to Kaspersky, the spies made a technological breakthrough by figuring out how to lodge malicious software in the obscure code called firmware that launches every time a computer is turned on.
Disk drive firmware is viewed by spies and cybersecurity experts as the second-most valuable real estate on a PC for a hacker, second only to the BIOS code invoked automatically as a computer boots up.
"The hardware will be able to infect the computer over and over," lead Kaspersky researcher Costin Raiu said in an interview.
Though the leaders of the still-active espionage campaign could have taken control of thousands of PCs, giving them the ability to steal files or eavesdrop on anything they wanted, the spies were selective and only established full remote control over machines belonging to the most desirable foreign targets, according to Raiu.
SAN FRANCISCO (Reuters) - The U.S. National Security Agency has figured out how to hide spying software deep within hard drives made by Western Digital, Seagate, Toshiba and other top manufacturers, giving the agency the means to eavesdrop on the majority of the world's computers, according to cyber researchers and former operatives.
That long-sought and closely guarded ability was part of a cluster of spying programs discovered by Kaspersky Lab, the Moscow-based security software maker that has exposed a series of Western cyberespionage operations.
Kaspersky said it found personal computers in 30 countries infected with one or more of the spying programs, with the most infections seen in Iran, followed by Russia, Pakistan, Afghanistan, China, Mali, Syria, Yemen and Algeria. The targets included government and military institutions, telecommunication companies, banks, energy companies, nuclear researchers, media, and Islamic activists, Kaspersky said. (http://reut.rs/1L5knm0)
Another former intelligence operative confirmed that the NSA had developed the prized technique of concealing spyware in hard drives, but said he did not know which spy efforts relied on it.
Kaspersky published the technical details of its research on Monday, which should help infected institutions detect the spying programs, some of which trace back as far as 2001.
The disclosure could further hurt the NSA's surveillance abilities, already damaged by massive leaks by former contractor Edward Snowden. Snowden's revelations have hurt the United States' relations with some allies and slowed the sales of U.S. technology products abroad.
The exposure of these new spying tools could lead to greater backlash against Western technology, particularly in countries such as China, which is already drafting regulations that would require most bank technology suppliers to proffer copies of their software code for inspection.
TECHNOLOGICAL BREAKTHROUGH
According to Kaspersky, the spies made a technological breakthrough by figuring out how to lodge malicious software in the obscure code called firmware that launches every time a computer is turned on.
Disk drive firmware is viewed by spies and cybersecurity experts as the second-most valuable real estate on a PC for a hacker, second only to the BIOS code invoked automatically as a computer boots up.
"The hardware will be able to infect the computer over and over," lead Kaspersky researcher Costin Raiu said in an interview.
Though the leaders of the still-active espionage campaign could have taken control of thousands of PCs, giving them the ability to steal files or eavesdrop on anything they wanted, the spies were selective and only established full remote control over machines belonging to the most desirable foreign targets, according to Raiu.
Kaspersky's reconstructions of the spying programs show that they could work in disk drives sold by more than a dozen companies, comprising essentially the entire market. They include Western Digital Corp, Seagate Technology Plc, Toshiba Corp, IBM, Micron Technology Inc and Samsung Electronics Co Ltd.
Western Digital, Seagate and Micron said they had no knowledge of these spying programs. Toshiba and Samsung declined to comment. IBM did not respond to requests for comment.
GETTING THE SOURCE CODE
Raiu said the authors of the spying programs must have had access to the proprietary source code that directs the actions of the hard drives. That code can serve as a roadmap to vulnerabilities, allowing those who study it to launch attacks much more easily.
"There is zero chance that someone could rewrite the [hard drive] operating system using public information," Raiu said.
According to former intelligence operatives, the NSA has multiple ways of obtaining source code from tech companies, including asking directly and posing as a software developer.
Western Digital, Seagate and Micron said they had no knowledge of these spying programs. Toshiba and Samsung declined to comment. IBM did not respond to requests for comment.
GETTING THE SOURCE CODE
Raiu said the authors of the spying programs must have had access to the proprietary source code that directs the actions of the hard drives. That code can serve as a roadmap to vulnerabilities, allowing those who study it to launch attacks much more easily.
"There is zero chance that someone could rewrite the [hard drive] operating system using public information," Raiu said.
According to former intelligence operatives, the NSA has multiple ways of obtaining source code from tech companies, including asking directly and posing as a software developer.
If a company wants to sell products to the Pentagon or another sensitive U.S. agency, the government can request a security audit to make sure the source code is safe.
"It's usually the NSA doing the evaluation, and it's a pretty small leap to say they're going to keep that source code."
Kaspersky called the authors of the spying program "the Equation group," named after their embrace of complex encryption formulas.
The group used a variety of means to spread other spying programs, such as by compromising jihadist websites, infecting USB sticks and CDs, and developing a self-spreading computer worm called Fanny, Kasperky said.
Kaspersky called the authors of the spying program "the Equation group," named after their embrace of complex encryption formulas.
The group used a variety of means to spread other spying programs, such as by compromising jihadist websites, infecting USB sticks and CDs, and developing a self-spreading computer worm called Fanny, Kasperky said.
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