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tv   Seven Russian Intelligence Officers Charged with Hacking  CSPAN  October 6, 2018 2:38pm-3:13pm EDT

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military intelligence officers. they are accused of hacking into databases of american, european, and new zealand agencies ahead :f the 2016 summer it's in rio de janeiro. this is about 30 minutes. >> good morning. u.s. attorney for
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the western district of ericylvania, scott brady, welling, deputy assistant director of the fbi, and part went. -- mike flynn. a recent intelligence operation against several intelligence agents discussing a plan to sign mission and the. hague. the mission left four russian intelligence officers being caught red-handed while they attempted to breach the cyber security. additional target and switzerland was her next target, analyzing the deadly russian nerve agent regarding the u.k. following an assassination attempt, as well as other chemical agents used in syria against innocent civilians. the netherlands and united
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kingdom and shoot a joint statement condemning the behavior. we are including the statement provided to you in the room and on justice.gov. our charges charge some of the same russian operatives in the hague, along with the colleagues in moscow, along with a conspiracy to hat organizations in the united states, canada, and europe to obtain information or access that would be exploited for the benefit of the russian government. more specifically, this indictment alleges the conspiracy to use computer hacking to obtain nonpublic or small health information about athletes and others and the files of anti-doping agencies and wearing variations of multiple agencies, and to release that information selectively and sometimes misleadingly. all this was done to undermine those organizations' efforts to ensure the integrity of the olympics and other games.
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other targets of this conspiracy worthy chemical weapons hague andy and the a laboratory here in america. three defendants in this case were deviously charged in the indictment brought by these national office of the council in july of this year which pertained to a conspiracy to interfere with the 2016 u.s. presidential election. indictment does not arise out of the word of the special counsel. nonetheless, these indictments charge overlapping groups of conspirators, and they have some of the same message with computer intrusion and the same overarching russian strategic goal, to pursue with interest disinformation operations and at muddying or altering perceptions of the truth. the crux of this indictment, which u.s. attorney scott brady will describe in more detail, is the targeting of the world and t anti-do agency and
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the canadian center for ethics in sport, which is canada's anti-doping body. the response to the anti-doping officials exposure of russia's systematic and state-backed athlete doping program. embarrassed by that truth, russia fall back by retaliating against the truth teller' and against the truth itsels. the results of russia's hacks, hav however, was not just felt by te industry. russia decided to provide the personal information of 250 countriesf different that onl om it is the true nature and context of the information. i hope that today's charges, which fall far from the electoral arena of our prior charges, we can further execute
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ourselves-- educate of the russian influence on the campaign. i also hope that members of the international news media will cast a suspecting eye on future hacks and operations, which seek in part to manipulate stories in russian influence. it is evident from the allegations in today's indictment that the defendants believe they could use their anonymity to act with impunity, in their own countries and on the territories of other sovereign nations, to undermine international institutions and to distract from their government's own wrongdoing. they were wrong. working together with our partners and nations that share thevalues, we can expose truth for the world to see her nations like russia and others that engage in malicious and norm-shattering activities should understand the continuing and steadfast resolve of the united states and its allies to vent, disrupt, and deter
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unacceptable conduct. justice is patient, its reach is long, and his memory is longer. before i turn it over to the u.s. attorney, i would like to extend my gratitude to the prosecutors and its office, here in the national security division as well as the team of fbi investigators, the royal canadian mounted police and our international partners in the netherlands, switzerland, and united kingdom, who are together responsible for where we are today. thank you. thank you, john. good morning. i'm scott brady, the u.s. attorney for the western district of pennsylvania. today, through our indictment of seven officers of the russian intelligence directorate, we are fighting back to protect u.s. citizens and organizations from criminal cyber attacks funded by the russian government. these seven defendants are
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charged with the pervasive campaign of hacking, stealing private and sensitive information, and publicizing that information to retaliate against russia's detractors and sway public opinion in russia's favor. along with our international partners, we are shining a light on these criminals and are one step closer to bringing justice to victims of these attacks. there were hundreds of victims targeted by these russian criminals. the defense targeted athletes, anti-doping agencies as retaliation for the russia's state-sponsored athlete doping program. the victims included approximately 250 athletes from 30 countries, as well as u.s. and international anti-doping agencies. the court of arbitration for sport, the international association of athletics federation, fifa, and as many as 35 other anti-doping or sporting federations.
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but these bad actors carried out retaliatory attacks to further other russian interests as well. they targeted westinghouse, a nuclear power company in based in pittsburgh, pennsylvania, that supplied nuclear fuel to the ukraine. they targeted the organizations for the prohibition of chemical weapons, which was investigating the use of chemical weapons in syria, and the poisoning of a former gru officer and his daughter in the u.k. they targeted a lab in switzerland that analyzed the nerve agent used in that poising. let me talk briefly about the charges in the indictment. the defendants are charged with engaging in a lengthy and wide-ranging conspiracy to hack into private computers and networks around the world. the victims of this illegal activity are anti-doping organizations in the u.s. and abroad.
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, swiss and dutch entities which investigate the use of chemical weapons, and as i mentioned, an important company in my own district, westinghouse. they use spearfishing to gain access to protected computers and networks. these illegal actions provided the basis for the wire fraud conspiracy counts. five defendants were charged with aggravated identity theft. they illegally obtained identifying information, including passwords used by real persons, and exploited it to further their hacking activity. one defendant is charged with four counts of wire fraud. he is alleged to have sent spearfishing emails to specific employees of westinghouse in an effort to trick them into providing their login credentials, which would enable him to gain access to their personal email accounts and then ultimately westinghouse's network. finally, all defendants are charged with illegal money laundering.
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currency, such as bitcoin, to purchase the him info, such as registered domains, and buying other hacking tools. the financial transactions occurred in the u.s. i want to talk about two things. generally. the how of this conspiracy is fascinating. our ability to identify operational practices was critical in our ability to identify the defendants and bring the charges today. our progress lays this out in detail. the use of spearfishing campaigns, the use of d. attacks, the deployment and command and control of malware, the creation of spoofed domains, the use of crypto currency, the , the creation of a false activist profile to publish stolen data, and the role of on-site or close access teams to
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hack hotel wi-fi and steal officials' network access information. it is important that the why not get lost in this. this began with the disclosure of russian state and doping of its athletes. in other words, russia cheated. they cheated, they got caught, they were banned from the olympics, they were mad, and they retaliated. in retaliating, they broke the law. so they are criminals. i want to say a word about the victims in this case as well. in the midst of discussions of international standards and national strategic interests, it is important to remember these defendants engaged in criminal activity in violation of the laws of the u.s., which harmed u.s. citizens. this was not spy versus spy. this was not passive intelligence gathering, this was
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a criminal conspiracy that cause d real harm to real victims. when the gru targets american corporations to steal trade secrets and technology, it caused american companies billions of dollars and lost r&d and capital investment. there is a real cost to american workers, many of whom may lose their jobs if companies, production, or sales suffer. when the gru publish u.s. athletes' most private and sensitive medical information, to embarrass our sports organizations, we are all made more vulnerable. no american citizen, let alone our most published athletes that represent the u.s. in world competition, should have to endure this. when the gru hacked anti-proliferation organizations and labs that test the use of chemical weapons for their own parochial interests or advantage, we are all made less safe. we of the justice department are not satisfied with exposing the conduct that is the subject of the investigation. our goal is the same as in every
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case that we charge. we seek to arrest those who have broken the law. in this case, we want to bring them to pittsburgh. we want them to stand trial, and we want to put them in jail. these defendants must be held accountable for their crimes, . that is our goal. that is what our victims deserve, and that's what justice requires. we will now hear from eric welling, fbi's deputy assistant director for cyber. mr. welling: good morning, everyone. again i'm eric welling. ,i am deputy assistant director on behalf of the fbi. i would like to make a few comments to echo the sentiments of my colleagues. the fbi is charged with defending the u.s. against cyber crimes. we face cyber threats from hackers for hire and illicit enterprises. we also face threats from nationstates, as we see in the indictments issued today. the seven individuals indicted are all officers in the russian gru. the fbi investigation revealed
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that the gru conducted computer hacking activities to retaliate against the world anti-doping officials who publicly exposed russian government sponsorship of doping by russian athletes. the campaign was undertaken to internationally and intentionally damage world organizations and athletes committed to fairness. they infiltrated networks and computers of domestic and international anti-doping agencies, anti-doping officials, sporting federations, and hundreds of clean international athletes from almost 30 countries.orting associations. notably, they targeted the organization of the prohibition of chemical weapons, among others. in situations where the officers could not remotely hack into the targeted systems, they traveled using russian government passports around the world to conduct close access hacking operations. you will see photos, and i think we have others that we will
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provide after the conference. you will see the rental car used by the operative outside of the organization for prohibition of chemical weapons. you will see the materials and gear that was abandoned after the failed intelligence operation. you can also then see how the gear was arranged to penetrate the wi-fi systems. this equipment was also used in compromises previously. the involved targeting of the wi-fi networks was used by victim organizations of various organizations, including switzerland, the netherlands, and brazil. the gru used unauthorized access and stolen information to obtain for the strategic benefit of the russian federation. they engaged in a campaign of influence and disinformation to
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advance the interests of the russian government. specifically, they worked to undermine and stabilize the efforts of international anti-doping officials, publicize and expose medical information and drug testing results belonging to athletes, and damage to the reputations of clean athletes by peddling a false narrative suggesting such athletes were using banned or performance-enhancing drugs. the gru officers publicly released stolen private information online, hiding behind the name of fancy bear hacking team. these activities by gru officers moved beyond government and intelligence operations. the gru is breaking international norms and the law in using cyber tools and resources in the fashion they have. the fbi considers any criminal activity conducted by nationstate actors, especially those leading to the violations of americans' privacy, or interference in our economy, to be a matter of national
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security. these gru officers broke u.s. law by hacking into u.s. and for structure and victimizing u.s. citizens. victims targeted by nationstates should not have to face the threat alone. this indictment is an important step in standing with and taking justice for the victims. we fully identified these conspirators, we can show who they are, we provide detailed information and evidence of their affiliation with the russian government. these charges reinforce this behavior is not acceptable and violates international norms, as well as u.s. criminal laws. these charges further lay out for the international community some of the basis for the u.s. government's prior searches that the government was responsible for other cyber intrusions and attacks. this indictment serves as a reminder that the fbi does not tolerate criminal activity, even conducted at the behest of nationstates. we believe the officers are located in russia and are not immediately able to get the charges. still, people travel, and many
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countries support international norms and the rule of law. we provide them the opportunity to answer for this. we can't always apprehend suspects easily or quickly, but we will keep at it. the justice department has a long memory and a responsibility to the victims. we wouldn't be here today without the courage and cooperation of the victims. we encourage all of them to report suspected intrusions to their local offices, so we can raise the cost of this kind of behavior. we understand you may be reluctant, but we strive to minimize the destruction to their daily activities and to safeguard their privacy. we don't want victims to feel re-victimized by the investigation. suffering in silence doesn't serve anyone. we want to thank our international partners. today is a victory of cooperation and information sharing. the royal canadian mounted police for their strong support and coordination between the investigations, here and there. the u.k. national security intelligence agencies for their untiring support. the netherlands defense intelligence security service for their information sharing
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and assistance illuminating the tactics and trade craft of the gru. and switzerland's attorney general's office for providing key evidence and providing prompt response. we will continue to work together to work every tool we can to fight cyber activities. we work with diversity of thought, diversity of countries, with a commonality of our best to ensure the safety of our people and networks. thank you. >> any questions? >> thanks for doing this. i know you said the defendants are in russia and can't be apprehended. do you have any reason to believe they have access outside of russia to the u.s. or other european countries that could be seen as a way to try to get back some money for the victims? mr. demers: i'm not sure about that now. but that brings up an excellent
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point, which is often one of the purposes of these charges, to provide the foundation for other parts of the government to take action. we have certainly seen things in the past where we have followed actions like this, sanctions on the defendants, the organizations, and other people involved. the administration has already sanctioned many of the folks involved in previous cyber activity, including some of the oligarchs who have supported it. carrie: yes, kerry johnson from npr. i'm curious if you have more information about the motivation of these hackers to target westinghouse? was it because they were supplying energy to the ukraine, or any other information you playsnd how westinghouse in this? it seems to be apart from some of the other sports related victims. mr. demers: i don't think we will go beyond with what is in the indictment at this point.
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kerry: did they actually penetrate westinghouse's computer system? mr. demers: again if it is not , in the indictment, we will not talk about it. this is an international problem and international law enforcement are collaborating. our remarks are limited because we have an ongoing investigation in canada with respect to canadian victims, two of whom which you learned about today and the excitement, hosted by canada and the anti-doping agency. those investigations are parallel investigations. however, there is strong collaboration and sharing information amongst the law
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enforcement community to tackle this problem as a global community, which is critical in any success we are going to having dealing with this problem. we have to make the word -- make the world borderless and a law enforcement context for these criminals in terms of their reach globally. reporter: how did this when get started compared to the one from overseas? >> i'm not going to get into the details but we have a great interest in this group of hackers. we have indicted members of this group in the past, and investigations get started in any number of ways, including and we coming forward, are seeing aspects of his conduct in the course of other investigations. reporter: how interesting is it that it shows how nimble they were in terms of targeting a lab that was doing work in terms of
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the fascination in the ukraine regarding nerve agents. the level of given activity, any update on whether they are targeting the midterm elections? john: their effort in this regard and their nimbleness in this regard shows the resources of a state-backed hacking organization that can not only do cyber intrusions from home, but can also send its officers abroad with diplomatic passports in order to do this. this is why it is such a serious threat, and i think this case is a serious example and illustration of all that. at this time i don't have anything further on the current status of the election. abouter: quick question the dutch intelligence service.
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did they disrupt the investigation of the gru officers in the hague, but they just disrupted the operation somehow in the guys got away? i don't think i should get into details of that. those are best answered by the dutch. i will say, great credit to the dutch for preventing a crime from happening. success law enforcement is preventing a crime of time, and they did that. they disrupted this very early andn what they were doing, the people involved abandoned their equipment there. think it'sthat, i for the dutch to comment on their operations. we believe all the defendants are currently in russia. reporter: your statement said it led to four officers being caught red-handed. are you saying they were not
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actually arrested? the: that's really for dutch to comment on. that's not our law enforcement action. you -- youou city say you want to bring these people to justice. when people are denying that they are connected to the russian government, does that impact her ability to bring people to justice? john: the indictment lays out everything it lays out in terms of the involvement of fancy bare , in terms of the -- fancy bear, in terms of the involvement of the russian government. these are russian military officers. if we could get our hands on these folks one day we would have no problem bringing them to justice. reporter: when people claim that connection to russia isn't true, does that impact your ability to do that? hands onn we get our them, we are not going to have any problems.
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reporter: three of the officers in the were previously indicted by robert mueller steam. thi -- was this coordinated with robert mueller's office? was: this investigation totally separate from robert mueller's office. -- rter: john: i'm not going to respond to questions about any internal justice department discussions. pennsylvania often seems to be involved in the cases charging folks packing for an -- folks in foreign governments hacking. is everybody believes this affected to -- an effective deterrent. >> to answer the first part of your question, the reason that they are in pittsburgh is that
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we have the best agents and the best prosecutors in the department of justice. i take issue of the premise to issue totion -- i take the premise of your question that name and shame doesn't have value. if we can't put our defendants on them this time, they are limited from traveling because they know if they travel to countries with which we have extradition, they know they will be sent to the united states and be held accountable. but we have seen in our cases which you referenced, the wang don case, prosecution of five members of the pla and 2014, and the casing 2017, we have seen a at least in china and those cases, their corporate espionage practices. those were part of bilateral discussions between the president and the state department, so we believe they are effective. and even if one takes issue with that, it's important that the victims of these crimes understand that we are behind them, and we are going to hold
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people accountable publicly for those crimes. >> thank you very much. >> thank you all. >> thank you. >> now, a look at sandy beach ottawa who up -- sandy beach on oahu's south shore, a popular surfing location. 's south beach on oahu shore is one of hawaii's most popular surfing locations. >> the culture is really cool. we have a brotherhood. we'll watch out for each other. we are all friends. everybody who comes here regularly knows each other, and and givewaves everybody else waves to catch and stuff like that. so we are always sharing waves. that's a nice feeling when you
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come here, kind of like home. [wind and waves] [search crashing -- surf crashing] this is like the capital of surfing. it's a royal sport, so as a hawaiian you want to perpetuate the culture. and from a practical level, if you are here the ways are dangerous, and often times you see people come here, they don't understand the waves, they don't understand that they can be really powerful. and so you see families jumping in there and getting in trouble. vantage of the knowing about the surf, respecting the ocean, and we can
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help them by telling them, you don't want to go here. and actually we have done a bunch of rescues. most of my friends have rescued people here. [birds chirping] [surf crashing] >> i feel like this is just where surfing has -- where surfing started, and it has created so many things for hawaii, not just tourism but all the bonds created through surfing. i feel like we are all one big community.
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[wind and waves] [ukulele music] the c-span bus made the journey to hawaii for the 39th stop of our c-span capitals to her. join us all weekend on c-span book tv and american history tv. we will feature stops across the theiian islands, showcasing natural beauty, unique history and literary culture of the 50th state.
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bracket singing was -- hawaiian singing] >> shortly the u.s. senate will vote on the nomination of judge the nextanaugh to be justice of the u.s. supreme court. while the debate has been going on, protesters have gathered outside the supreme court and across the street from the u.s. capitol. there is a live look at the protests outside the supreme court. this is live coverage on c-span. when we say that the work doesn't end today, what we need is that there are dozens of these nominees. thesest like kavanaugh, people are against human rights, reproductive rights, anti-disability rights, anti-labor, i could go on forever. so, with that said, they are
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accountable not just for the supreme court but for all the federal courts. [cheering] comes down to is, only a few cases go to the supreme court each year but thousands of these cases are decided in the lower courts, all the issues we just talked about are decided by these judges, and most of the -- most of the time these rulings stand, and we have to do something about this. [indiscernible] -- every lifetime official appointed. are you going to stand up and fight? on the confirmation of brett kavanaugh to bury a supreme court justice is
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expected shortly. live coverage of the senate senatecan seize -- debate can be seen now on c-span it too. [crowd cheering] president trump is expected to speak at a campaign rally in topeka, kansas. we will have live coverage at 7:30 p.m. eastern here on c-span. ♪ c-span's washington journal, live every day with news and policy issues that affect you. morning, dailyy beast washington correspondent elenor clift and a washington theespondent duck about brett kavanaugh supreme court nomination. and as part of our hawaii planet, the blue foundation executive director talks about renewable energy at the hawaii clean energy initiative. watch c-span's washington journal live at 7:30 a.m.
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eastern sunday morning. >> now, federal regulators testified before the senate banking committee on growth, regulatory relief and consumer protection act, and how the improvereserve plans to the regulatory process. this is just over two hours. . the agencies responsible for the supervision and regulation of banks or credit unions. each will provide an overview of its efforts, activities and plan to implement s. 2155 economic growth regulatory relief and consumer protection providing testimony will be the federal reserve vice chairman for supervision, federal deposit insurance

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