Yahoo cyber indictment shows Kremlin, hackers working hand-in-hand

Acting Assistant Attorney General of National Security Mary McCord speaks during a press conference to announce criminal charges against three Russians for the 2014 hacking of Yahoo at the US Department of Justice on Wednesday in Washington, DC. (AFP / Brendan Smialowski)
Updated 16 March 2017
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Yahoo cyber indictment shows Kremlin, hackers working hand-in-hand

WASHINGTON: Wednesday’s indictments in the US of four people in a 2014 cyberattack on Yahoo Inc. provides the clearest details yet on what some officials say is a symbiotic relationship between Moscow’s security services and private Russian hackers.
The indictment charges two officers of the FSB, Russia’s Federal Security Service, and two hackers who allegedly worked hand-in-hand with them to crack 500 million Yahoo user accounts.
US authorities and cybersecurity specialists have long said the Kremlin employs criminal hackers for its geostrategic purposes. They say the arrangement offers deniability to Moscow and freedom from legal troubles for the hackers.
A US intelligence official, speaking on condition of anonymity, said employing criminal hackers helps “complement Kremlin intentions and provide plausible deniability for the Russian state.”
The FSB in Moscow did not respond immediately to a request for comment on Wednesday evening.
The United States sometimes engages with criminal hackers as well, buying tools from them or recruiting them to help find other criminal hackers, cybersecurity professionals and government officials say.
Milan Patel, a former FBI cyber agent and now managing director for cyber defense at K2 Intelligence, said the intermingling of espionage and cybercrime in Russia had led the United States and its allies to be far more wary about alerting Moscow to criminal hackers.
“Magically those guys would disappear off the battlefield and most likely end up working for the Russian government,” Patel said of the names shared by Washington.
The Russian government had no official comment on the charges in the Yahoo case.
Russian news accounts stressed that one of the FSB agents, Dmitry Dokuchaev, was arrested by Russian authorities in December and charged with treason.
The indictment charges Dokuchaev with having acted as a handler for a hacker named Karim Baratov, directing him to use the Yahoo data to crack e-mails on other systems and paying him a bounty when he succeeded.
Baratov is in custody in Canada, according to the Toronto police, while Dokuchaev remains in Russia.
The charges coincide with mounting tensions between US intelligence agencies and Russian President Vladimir Putin’s government, which they accused of hacking the 2016 US presidential election to influence the vote in favor of then-Republican candidate Donald Trump.
In addition, congressional committees are investigating possible links between Russian figures and associates of President Trump.
Senator John Warner of Virginia, the ranking Democrat on the Senate Select Committee on Intelligence, said in a statement the indictments showed “the close and mutually beneficial ties between the cyber underworld and Russia’s government and security services.”
He said the case “underscores the complexity and the urgency” of the committee’s investigation of Russian interference in the US election.
James Lewis, a former State Department official and now a cyber expert at the Center for Strategic and International Studies, said there were three rules for cooperation between the Russian government and criminal hackers.
Private hackers know to avoid attacking Russian-language sites and to share their profits with authorities, he said. “Rule Number Three (is), if we ask you to do us a favor, do it.”


Carney says Canada has no plans to pursue free trade agreement with China as Trump threatens tariffs

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Carney says Canada has no plans to pursue free trade agreement with China as Trump threatens tariffs

TORONTO: Canadian Prime Minister Mark Carney said Sunday his country has no intention of pursuing a free trade deal with China. He was responding to US President Donald Trump’s threat to impose a 100 percent tariff on goods imported from Canada if America’s northern neighbor went ahead with a trade deal with Beijing.
Carney said his recent agreement with China merely cuts tariffs on a few sectors that were recently hit with tariffs.
Trump claims otherwise, posting that “China is successfully and completely taking over the once Great Country of Canada. So sad to see it happen. I only hope they leave Ice Hockey alone! President DJT”
The prime minister said under the free trade agreement with the US and Mexico there are commitments not to pursue free trade agreements with nonmarket economies without prior notification.
“We have no intention of doing that with China or any other nonmarket economy,” Carney said. “What we have done with China is to rectify some issues that developed in the last couple of years.”
In 2024, Canada mirrored the United States by putting a 100 percent tariff on electric vehicles from Beijing and a 25 percent tariff on steel and aluminum. China had responded by imposing 100 percent import taxes on Canadian canola oil and meal and 25 percent on pork and seafood.
Breaking with the United States this month during a visit to China, Carney cut its 100 percent tariff on Chinese electric cars in return for lower tariffs on those Canadian products.
Carney has said there would be an initial annual cap of 49,000 vehicles on Chinese EV exports coming into Canada at a tariff rate of 6.1 percent, growing to about 70,000 over five years. He noted there was no cap before 2024. He also has said the initial cap on Chinese EV imports was about 3 percent of the 1.8 million vehicles sold in Canada annually and that, in exchange, China is expected to begin investing in the Canadian auto industry within three years.
Trump posted a video Sunday in which the chief executive of the Canadian Vehicle Manufacturers’ Association warns there will be no Canadian auto industry without US access, while noting the Canadian market alone is too small to justify large scale manufacturing from China.
“A MUST WATCH. Canada is systematically destroying itself. The China deal is a disaster for them. Will go down as one of the worst deals, of any kind, in history. All their businesses are moving to the USA. I want to see Canada SURVIVE AND THRIVE! President DJT,” Trump posted on social media.
Trump’s post on Saturday said that if Carney “thinks he is going to make Canada a ‘Drop Off Port’ for China to send goods and products into the United States, he is sorely mistaken.”
“We can’t let Canada become an opening that the Chinese pour their cheap goods into the U.S,” US Treasury Secretary Scott Bessent said on ABC’s “This Week.”
“We have a , but based off — based on that, which is going to be renegotiated this summer, and I’m not sure what Prime Minister Carney is doing here, other than trying to virtue-signal to his globalist friends at Davos.”
Trump’s threat came amid an escalating war of words with Carney as the Republican president’s push to acquire Greenland strained the NATO alliance.
Carney has emerged as a leader of a movement for countries to find ways to link up and counter the US under Trump. Speaking in Davos before Trump, Carney said, “Middle powers must act together because if you are not at the table, you are on the menu” and he warned about coercion by great powers — without mentioning Trump’s name. The prime minister received widespread praise and attention for his remarks, upstaging Trump at the World Economic Forum.
Trump’s push to acquire Greenland has come after he has repeatedly needled Canada over its sovereignty and suggested it also be absorbed into the United States as a 51st state. He posted an altered image on social media this week showing a map of the United States that included Canada, Venezuela, Greenland and Cuba as part of its territory.