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CYBER WARS
Cyber and network security a threat to energy companies
by Staff Writers
Washington (UPI) May 31, 2013


Australia spy chief says new building safe
Sydney (AFP) May 31, 2013 - Australia's spy chief has declared the nation's new intelligence headquarters secure after reports Chinese hackers stole the building's top secret blueprints.

Speaking for the first time since the reports aired Monday, Australian Security Intelligence Organisation (ASIO) director general David Irvine said security would meet "very, very high standards".

Irvine would not confirm or deny whether Chinese hackers had obtained the floor plan and cable layouts for the security and communications system of the Canberra building.

"We incur all sorts of risks if intelligence operation matters are aired in public," he told a parliamentary hearing late Thursday.

"Can I just assure you though, that I am satisfied that the security of the ASIO building is, and will be, meeting the very, very high standards that are required of a building of that nature."

The Australian Broadcasting Corporation reported on a cyber attack on a contractor linked to the new Canberra headquarters of ASIO which it said was traced to a server in China.

Beijing has said it was "very difficult to find the origin of hacker attacks", with foreign ministry spokesman Hong Lei questioning "where the evidence is for the relevant media to make such reports".

The news came as a Pentagon report also accused Chinese hackers of accessing US weapons designs as part of a large-scale cyber spying campaign against top US defence contractors and government agencies.

China described these as "misjudgements".

In his comments, Irvine said ASIO had also reviewed the terror threat to Australia following the hacking to death of a British soldier in London but concluded it should remain at medium -- a level indicating an attack is feasible and could occur.

"Some sort of crippling fear of a terrorist attack should not dominate the way Australians live their lives," he said.

"Nevertheless we should all... continue to be alert to the fact that there... will be a small number of people within our midst who still talk and some aspire to walk the language of terrorism."

Irvine said the "threat from home-grown lone actor terrorists, or small localised groups who are often largely self-radicalised and see it as some sort of religious or political obligation to conduct an attack" remained.

Network security and cybersecurity are becoming top concerns for the energy sector, a new report reveals.

In what Ernst and Young refers to as an "invisible" threat, the issue emerged for the first time this year in the firm's recurring survey of most important concerns of energy executives, ranking ninth on the list.

Ernst and Young based its "Business Pulse: Oil and Gas" study, released this week, on a survey of more than 100 oil and gas industry executives from 90 companies in 21 countries.

The report cited three main types of information technology security threats: Intellectual property theft, commercial espionage and operational sabotage, which Ernst and Young said was potentially the most damaging and high-profile of the three because "targeted attacks increasingly have the potential to bring down crucial components of a company's infrastructure network."

"Oil and gas facilities are crucial to a country's national infrastructure and, as such, are likely to be among the primary targets for cyberattacks," the report warns.

Control systems used by oil and gas companies are becoming more sophisticated, but that also means that having a physical network controlled digitally poses "significant" risks, it added.

With the amount of sensitive proprietary information circulating within and between oil and natural gas companies and their counterparties, Ernst and Young says, information security needs to be "watertight" to prevent both industrial espionage and breaches by "hacktivists" -- those who hack into computer networks to promote a political or social ideology.

"Chief information officers have suddenly become very important with respect to the management of companies," Ernst and Young's Marcela Donadio said in the report. "Previously, the major IT issue concerned the operational effectiveness of systems, but now, security is equally important."

The report quoted one company as saying: "When we go to particular countries we go with clean cellphones and clean computers. We don't store any information, we don't transmit any information back home and we don't go on any networks."

Yet the firm's research indicates that most information leakages or threats come from internal rather than external sources.

A March report by Houston network security firm Alert Logic said that 61 percent of the 54 energy companies it serves experienced targeted malware attacks, often involving malicious software that company workers had load inadvertently onto their networks through contaminated USB drives, links in emails, or infected websites.

The top-ranked concern revealed by this year's Ernst and Young survey was "the risk of a health, safety or environmental incident," as it was in the last survey, in 2011. Other key risks in the latest survey include price volatility, an uncertain energy policy, access to reserves and markets and cost escalation.

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Hagel to discuss cyberthreat with Chinese
Aboard A Us Military Aircraft (AFP) May 31, 2013
The United States must develop "rules of the road" with China and other countries to mitigate cyberthreats, Pentagon chief Chuck Hagel said Thursday. The defense secretary spoke after a Pentagon report found that Chinese hackers have gained access to secret designs for a slew of sophisticated US weapons programs, possibly jeopardizing the American military's technological edge. Officials ... read more


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