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tv   Justice Department Indicts Russian Spies in Yahoo Hacking Attack  CSPAN  March 16, 2017 8:41am-8:57am EDT

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a news briefing from the justice department yesterday. attorneys announcing indictments alleging that russian government spies were behind the yahoo! 2014 security breach stealing information of about more than half the voting users. we wish him as much as we kept of this briefing until the event is ready live from roll call. >> good morning. thank you for being here today. i'm mary mccord, the acting
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assistant attorney general for the national security division of the department of justice, and with me here today is fbi executive assistant director paula bates, just attorney for the northern district of california, brian stretch, and office of international affairs director. we are here to announce a major law enforcement action related to one of the largest stated breaches in u.s. history. today we are announcing the indictment of four individuals responsible for the 2014 hack into the network of e-mail provider yahoo!, the theft of information about at least 500 million yahoo! accounts and the use of that information to obtain the contents of accounts at yahoo! and other e-mail providers. the defendants include two officers of the russian federal security service and intelligence and law enforcement agency of the russian
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federation, and to criminal hackers with whom they conspired to accomplish these intrusions. dmitri and igor, both fsb officers detected him and directed, facilitated and paid criminal hackers to collect information through computer intrusion in the united states, and elsewhere. they worked with co-conspirators, alexi and kareem, two into the the computers of american companies provide e-mail and internet related services. to maintain unauthorized access to those computers and to steal information, including information about individual users and the private contents of their accounts. the defendants targeted yahoo! accounts of russian and u.s. government officials, including cybersecurity diplomatic, and military personnel. they also targeted russian
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journalists, numerous employees of other providers whose networks the conspirators sought to exploit him and employees of financial services and other commercial entities. a lot has been indicted twice before in the united states 43 intrusions into e-commerce companies that victimized millions of customers. and he has been one of the fbi's most wanted cyber criminals for more than three years. his notorious criminal conduct and depending interpol red notice did not stop at fsb officers who, instead of detaining him, used him to break into yahoo! networks. meanwhile, he used his relationship with the two fsb officers and his access to yahoo! to commit additional crimes to line his own pockets with money. specifically, he used his access to yahoo! to search for and steal financial information such
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as gift cards and credit card numbers from users e-mail accounts. he also gain access to more than 30 million yahoo! accounts whose contacts he then stole to facilitate an e-mail scam. with these charges in the department of justice is continuing to send a powerful message that we will not allow individuals, groups, nationstates, or a combination of them to compromise the privacy of our citizens, the economic interest of our companies or the security of our country. for those who may not be fully with the fsb, it is an intelligence and law enforcement agency and a successor to the soviet unions kgb. the fsb unit that the defendants worked for, the center for information security, also known as center 18, is also the fbi's point of contact in moscow for cybercrime matters. the involvement and direction of fsb officers with law
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enforcement response was makes this conduct that much more egregious. the are no free passes for four state-sponsored criminal behavior. through the work of the national security division, the fbi, united states attorneys offices around the country we continue to pursue national security cyber threats using all available tools to investigate malicious activity and achieve it bad to the country, agency, and even the individuals involved. when possible and supported by the evidence we intend to charge those individuals and bring them to justice. as i wrap up i'm also pleased to announce that a fourth co-conspirator charge in the indictment, kari, karim baratovs arrested just yesterday in canada on a u.s. government provisional arrest warrant. i would like to thank all of those who worked diligently to bring the investigation to this point, clinton and women of the national security division, the fbi and the u.s. attorneys
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offices for the northern district of california and the criminal divisions office of international affairs, for their tireless work. i would also like to extend a special thanks to yahoo! and google whose customers work targeted and who cooperated with law enforcement. it is very important for corporations around the country to know that when you are going against the resources and backings of a nationstate, it is not a fair fight and it is not a fight you are likely to win a loan. but you do not have to go it alone. we can put the full capabilities of the united states behind you to make cases like this, but we cannot do it without your help. at this time i like to introduce fbi executive assistant director paul abates who will provide additional details on today's announcement. >> thank you, mary. good morning everyone and
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welcome. today's announcement is a testament to the tremendous work and extraordinary efforts that it been done to identify and hold accountable those individuals believed to be responsible for the significant breach of yahoos networks and information technology systems. this indictment details how russian federal security service ofcers wking together with the crimil hackers conspired to planetaryt one of the largest cyber intrusions in u.s. history. these perpetrators compromise the companies networks along with the accounts and personal information of approximately 500 million yahoo! users, and further still millions of user contacts in order to carry out fraud schemes for the own personal financial gain and enrichment, among other things. i want to note this was a highly complex, long-term investigation that has only reached this stage as result of the relentless and persistent and dedicated efforts
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of the team that also further underscores the immense and central value of early proactive engagement and cooperation between the private sector and the government. our ability to identify, detected only hold cyber criminals accountable under the law while preventing and mitigating harm is contingent upon our ability to work closely and cooperatively with companies and individuals who are targeted and victimized as in this case. as mary noted yesterday to arrest of co-conspirator karim baratov in canada which was executed by the toronto police services fugitive squad demonstrates our total and unyielding commitment to finding and bring to justice cyber crinals, no matter where they operate or reside. the criminal hackers in this case use a variety of techniques to access information they
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sought, including e-mail spear phishing, downloading malicious files and code onto yahoos networks, leasing servers in the u.s. and around the world to carry out their schemes and avoid detection and registry e-mail accounts using pulse subscriber information. as this indictment demonstrates, regardless of what methods are employed or where the criminal actors live, if you illegally target u.s. citizens or american companies, you will be identified, pursued, and held to account wherever you are. i want to highlight and commend the exceptional work of the fbi's san francisco field office, the fbi cyber division, ds attorneys office for the northern district of california and our partners here at the department of justice and the national security division. thank you to all those involved for your outstanding and ongoing contributions to resolving this case. we are extremely grateful as
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well to our international partners for their assistance and support leading up to these criminal charges today. those partners include canada's royal canadian mounted police, and a smidgen, the toronto police service and their fugitive squad. as wealthy united kingdom in my five made substantial contributions to the advancement of this investigation also. i want to thank additionally fbi legal attaché personnel in ottawa and in london for the great work in supporting and moving forward the operations and investigations that underlie the charges today. and i want to close by saying that we at the fbi together with our partners in the doj will continue to work hard day in and day out together with our interagency, international and private sector partners to, one come identify those who conduct cyber attacks against the united states and our allies, too, to identify and expose them to the
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world, f3, most important late to hunt them down and hold them responsible no matter where they live or where the attempt to hide. thank you all for being here today. without i'd like to turn over to brian stretch, the u.s. attorney for the northern district of california. serve. >> paul, thank you. my name is brian stretch, i'm the u.s. attorney in san francisco. i'm pleased to join the head of the national security division and the executive assistant of the fbi to advise you what the criminal charges with the widely reported yahoo! breach that occurred in 2014. as an important reminder to everybody, the criminal charges in the indictment announced today are allegations only, and all four defendants are presumed innocent unless and until proven guilty. we are joined today by investigating ausa, national security division lawyers and experience fbi agents who worked
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tirelessly with yahoo! and google to identify the responsible parties and the methods and means for perpetrating one of the largest data breaches ever. silicon valley is home to the worlds leading technology companies. the valleys computer infrastructure provides the means by which people around the world communicate with each other in business and in their personal lives. every day criminal hackers endeavor to gain unauthorized access to personal and proprietary information for nefarious purposes. the department of justice and the technology companies, together share a common goal and responsibly to protect private communications from cyber criminals. the privacy and security of our internet-based communications must be governed by the rule of law. people rightly expect that the government and technology companies both will make every
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effort to ensure that communications through internet providers will remain private. exceptions to this principle should be few, and governed by law. to this end, in recent years the doj has made cybersecurity a top priority, and has taken a number of steps to protect the public from cyber crime. part of this effort has involved conducting extensive outreach throughout silicon valley, and elsewhere, to encourage service providers to report unauthorized intrusion and the theft of trade secrets. both the doj and the technology companies throughout the country are beginning to see the fruits of this outreach. the benefits of reporting intrusions to the u.s. government include the following, the companies are able to obtain assistance from the government to determine the scope and extent of the intrusion, and to determine the identity of the hackers. the companies are also able to
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obtain information about what use the hackers put to the stolen information that has been obtained. and by working with investigators, the companies can target and limit investigatory methods celeste to prevent unnecessary access to the private records of the end of victims and holders. regardless, regarding the hacks are talking about today, yahoo! and google informed the energy of the data breaches, cooperated extensively with the fbi and doj attorneys to investigate the intrusions, and by leveraging the combined efforts of the government and the service providers, they assisted in effectuating a targeted, streamlined and effective investigation. the update to this type of approach, the responsible parties have been identified, charges have been returned, one defendant has been arrested, and arrest warrants have been issued for the remaining defendants.
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importantly, the cooperative efforts of the government and the private sector in this instance allowed the u.s. attorney's office, along with the national security division and the fbi to accomplish these initial results while maintaining the fundamental privacy interests of the account holders who had their information stolen. we commend both yahoo! and google for working with our office, the fbi and the national security division lawyers to identify and seek justice for the perpetrators of these intrusions. i'll turn it back to marry. >> you can watch all of this online at c-span.org. we will leave here and they collected discussion posted by roll call on the republican plan to replace the affordable care act. on the screen is andy slavitt, the former acting administrator for the centers for medicare and medicaid services joined onstage by texas congressman michael burgess. they've been talking for about two minutes or so and joining

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