Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Suspected Russian hackers spied on U.S. Treasury emails - sources

Published 12/13/2020, 01:52 PM
Updated 12/14/2020, 12:15 PM
© Reuters. Hooded man holds laptop computer as cyber code is projected on him in this illustration picture

By Christopher Bing

WASHINGTON (Reuters) - Hackers believed to be working for Russia have been monitoring internal email traffic at the U.S. Treasury and Commerce departments, according to people familiar with the matter, adding they feared the hacks uncovered so far may be the tip of the iceberg.

The hack is so serious it led to a National Security Council meeting at the White House on Saturday, said one of the people familiar with the matter.

U.S. officials have not said much publicly beyond the Commerce Department confirming there was a breach at one of its agencies and that they asked the Cybersecurity and Infrastructure Security Agency and the FBI to investigate.

National Security Council spokesman John Ullyot added that they "are taking all necessary steps to identify and remedy any possible issues related to this situation."

The U.S. government has not publicly identified who might be behind the hacking, but three of the people familiar with the investigation said Russia is currently believed to be responsible for the attack. Two of the people said that the breaches are connected to a broad campaign that also involved the recently disclosed hack on FireEye (NASDAQ:FEYE), a major U.S. cybersecurity company with government and commercial contracts.

In a statement posted https://www.facebook.com/RusEmbUSA/posts/1488755328001519 to Facebook (NASDAQ:FB), the Russian foreign ministry described the allegations as another unfounded attempt by the U.S. media to blame Russia for cyberattacks against U.S. agencies.

The cyber spies are believed to have gotten in by surreptitiously tampering with updates released by IT company SolarWinds, which serves government customers across the executive branch, the military, and the intelligence services, according to two people familiar with the matter. The trick - often referred to as a "supply chain attack" - works by hiding malicious code in the body of legitimate software updates provided to targets by third parties.

In a statement released late Sunday, the Austin, Texas-based company said that updates to its monitoring software released between March and June of this year may have been subverted by what it described as a "highly-sophisticated, targeted and manual supply chain attack by a nation state."

The company declined to offer any further detail, but the diversity of SolarWind's customer base has sparked concern within the U.S. intelligence community that other government agencies may be at risk, according to four people briefed on the matter.

SolarWinds says on its website that its customers include most of America's Fortune 500 companies, the top 10 U.S. telecommunications providers, all five branches of the U.S. military, the State Department, the National Security Agency, and the Office of President of the United States.

'HUGE CYBER ESPIONAGE CAMPAIGN'

The breach presents a major challenge to the incoming administration of President-elect Joe Biden as officials investigate what information was stolen and try to ascertain what it will be used for. It is not uncommon for large scale cyber investigations to take months or years to complete.

"This is a much bigger story than one single agency," said one of the people familiar with the matter. "This is a huge cyber espionage campaign targeting the U.S. government and its interests."

Hackers broke into the NTIA's office software, Microsoft (NASDAQ:MSFT)'s Office 365. Staff emails at the agency were monitored by the hackers for months, sources said.

A Microsoft spokesperson did not respond to a request for comment. Neither did a spokesman for the Treasury Department.

The hackers are "highly sophisticated" and have been able to trick the Microsoft platform's authentication controls, according to a person familiar with the incident, who spoke on condition of anonymity because they were not allowed to speak to the press.

"This is a nation state," said a different person briefed on the matter.

The full scope of the breach is unclear. The investigation is still its early stages and involves a range of federal agencies, including the FBI, according to three of the people familiar with the matter.

A spokesperson for the Cybersecurity and Infrastructure Security Agency said they have been "working closely with our agency partners regarding recently discovered activity on government networks. CISA is providing technical assistance to affected entities as they work to identify and mitigate any potential compromises."

The FBI and U.S. National Security Agency did not respond to a request for comment.

© Reuters. Hooded man holds laptop computer as cyber code is projected on him in this illustration picture

There is some indication that the email compromise at NTIA dates back to this summer, although it was only recently discovered, according to a senior U.S. official.

Latest comments

Stop unfounded claims - Documented proofs first !
Time for NLOK to start moving
I told you guys.... now when there is no proof to a news....I automatically regustered it is he said she said....
Russia is conquering and destroying America without firing a single shot. The unleashed and released their secret weapon disguised as a orange hair jellyfish in 2016.
This couldn't have happened on such a wide scale without Trump. He is Putin's secret sauce.
Microsoft's name always pop up in these stories. It's the opening it leaves in its OS to force updates on you that you don't need or want that makes hackers job a little easier.
Still making America great i see
Ironic the president elect sons emails show him and his son doing business with China in 2017 isn’t it? It won’t be hacking after January 20 it will be general relations with China.
That's ok, our own government has been hacking in to the Fed for 4 decades borrowing and spending like drunken sailors with no remorse!
Give it a month pltr stock will soar
Will donnie call Putin out though? 🤔
Doesn’t matter? The president elect and his son were doing business illegally with China since 2015, now that the news wants to report it
Why does the U.S. government use ISRAELI FIRE EYE software to protect America's secrets Post ?
FireEye is headquartered in California and has no links to Israel. Founder is from Pakistan.
  - Headquarters was recently moved to the U.S. from Israel...
 you tell stories. Go to Wikipedia and read company history.
The world has turned into one big farce!
Thank You!
I love how Mnuchin goes after regulating Crypto Wallets at the same time the government proves they can’t even protect the data integrity of the Treasury. It’s like they want Crypto to win at this point.
u right, and, apparently, blockchains win atm :-D but hey, they need to find a reason to dump trillions into developing of quantum computers, right? They also need to fill pockets with something and feed close to state that holds corporations, etc ;)
We always hear this and that but we never see proof....without proof, it is all he said she said news to me...
easier to read if they just typo China,. for billion $ spend on defense stuff, what a waste.
Fake news. Inside job.
Stealing data from an US government office is likely the easiest job in the hacking world.
Was me , I had to pay the rent...
Are they using Windows?
nope, too small, they're using doors
Typical Trump....allows foreign hackers to breach our systems. Worst president in US history and a record-breaking 82 million Americans told him to LEAVE! So long, LOSER!
You place too much trust in a president. Scary stuff. Little sheep.
Jay West, sorry for Thom Miller, his mind is so smallThere isn’t room for anything but his hate for Trump, it’s a little bit sad and a little bit amusing at the same time
US becomes increasingly third-world place. Lot of important professional positions in government and top companies get filled by quotas.
Yes... doesn’t matter if you are the most qualified, only what color your skin is and what you got between your legs, Democrats are incredibly racist and sexist.
Uh.. Female vice president. And of color?
in fact, US 3rd or lower place on MOST factors for recent decade. Being kicked all around, but unable to accept a new reality and integrate with renowned world. Gegemone... once someone told "The higher one flies, the painfull the fall". True story
its probably the communists again
 iran-russia-china-north korea but they dont have internet so ;) only china could do something with treasury information.  u want to know what they gonna do to end manipulation on CNY & CNH
 Iran and Russia are not communists, while Chinese are communists in name only. Quite possible, more communists, real ones, can be found within US than outside.
 oh, u know so little about Russia... In 2005 Russia had 100mbit optic to your home, while US and most of the world was still using tv cables :-D Educate yourself before you speak. We know US is afraid of Russia, and this would never change. You know why? Because presidents and other tops there know the truth about history of the world, that Slavs actually the one who populated the US lands over thousand years ago! ;) After what, Slavs power grew unstoppable, so Vatican managed to make one of Caesars to accept Christian religion and forced ALL slavs to accept it for long and ***12 years, when 30M population reduced to about 7M, and 300 cities became about 50 in total. After this, for thousand years "religion" used to systematically destroy their history and technologies, thus in 19th century their almost completely rewrote Slavs history. because Slavs is power, they are friendly, loving, caring, true socialists and when they fight - THEY FIERCE. Death over captivity. =_= Enjoy
All roads led to Putin
russia has the least interest of having cold wars with america, more likely china/turkey/iran/pakistan
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.