The Russian hackers who hit the DNC burrowed much further into the U.S. political system, sweeping in law firms, lobbyists, consultants, foundations and think tanks, according to a person familiar with investigations of the attacks.
Russia’s Long History of Messing With Americans Minds Before the DNC Hack - The Daily Beast:
Before the DNC Hack Russia’s intelligence services have a long history of mingling sinister fiction with shards of fact and leaking through third parties to cover their tracks...
Closer to our own time, following the invasion of Ukraine, we have seen the recrudescence of active measures as a form of Russian “hybrid warfare.” Sometimes they’re aimed at the United States, as when a phone call between Victoria Nuland, the assistant secretary of state for European and Eurasian Affairs, and Geoffrey Pyatt, the U.S. ambassador to Ukraine, was suddenly uploaded to the internet and framed to show a shadowy plot to not only influence the course of Ukraine’s post-Yanukovych period but also drive a wedge between Washington and Brussels.
“They might be making sure they are leveraging proxy infrastructure within their own borders,” said Rich Barger, ThreatConnect director of threat intelligence.
The fact that Guccifer 2.0’s VPN is Russian is not the first indicator that Russia was involved in the attack on the DNC. The email hack leveraged the same tools, methods and command servers seen in other attacks linked to Russian intelligence, including on the German Parliament.
“The noose is tightening around Russia,” said Barger.
Dmitry Adamsky, an Israeli analyst, wrote in a 2015 report that this “information struggle” is central to Russia’s new strategy.
This information war, he wrote, “comprises both technological and psychological components designed to manipulate the adversary’s picture of reality, misinform it and eventually interfere with the decision-making process of individuals, organizations, governments and societies.”
July 26, 2016, 6:33 PM (IDT)
Analysis by debkafile's intelligence and cyber defense sources has determined that the hacking and leak of 20,000 DNC emails was almost certainly not carried out by the GRU's cyber warfare branch, but may well have been the work of party opponents of Hillary Clinton.
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- Two still critical as Florida nightclub shooting investigated | Reuters
- Russia Won’t Commit to Avoiding Killing of U.S. Troops in Syria | Observer
- In D.N.C. Hack, Echoes of Russia’s New Approach to Power - The New York Times
- FBI Investigating DNC Hack Some Democrats Blame on Russia - Bloomberg Politics
- Russia’s Long History of Messing With Americans Minds Before the DNC Hack - The Daily Beast
- Evidence mounts linking DNC email hacker to Russia | TheHill
- ‘DNC Hacker’ Unmasked: He Really Works for Russia, Researchers Say - The Daily Beast
- 2016 Democratic National Committee email leak - Wikipedia, the free encyclopedia
- Hack attack on DNC would be in keeping with Russian tactics
- Russian ties: Ex-intel official says evidence on hacked DNC servers points to nation state | Fox News
- The Russia-linked election hack is a sign of things to come | The Verge
- U.S. Can’t Blame Russia as Easily as N. Korea in Latest Hack - Bloomberg Politics
- Kerry discusses DNC email hack with Russia's top diplomat - CBS News
- Was That A Russian Spy, Or Am I Getting Paranoid? : Parallels : NPR
- George Will raises possible Trump link to Russian oligarchs | TheHill
- American pastor expelled from Russia in LGBT case - The Washington Post
- Google Took Different Approaches Than Yahoo - WSJ
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The Federal Bureau of Investigation is investigating a hacking attack on the Democratic National Committee that some U.S. lawmakers and cybersecurity experts say may be linked to the Russian government.
“The FBI is investigating a cyber intrusion involving the DNC and are working to determine the nature and scope of the matter,” the bureau said in a statement Monday. “A compromise of this nature is something we take very seriously, and the FBI will continue to investigate and hold accountable those who pose a threat in cyberspace.”’
Democratic officials and cybersecurity company CrowdStrike Inc. said last month that hackers tied to the Russian government gained access to servers at the DNC. On Friday, three days before the start of the party’s national convention, almost 20,000 e-mails and other documents stolen in the attack were posted online by WikiLeaks, resulting in the ouster of DNC chairwoman Debbie Wasserman Schultz.
“That foreign actors may be trying to influence our election -- let alone a powerful adversary like Russia -- should concern all Americans of any party,” said Representative Adam Schiff of California, the top Democrat on the House Intelligence committee.
Political Targets
The Russian hackers who hit the DNC burrowed much further into the U.S. political system, sweeping in law firms, lobbyists, consultants, foundations and think tanks, according to a person familiar with investigations of the attacks.
The Russian government reiterated a previous statement denying involvement in the breach, spokesman Dmitry Peskov told reporters Monday. In its brief statement, the FBI made no mention of Russia and offered no details on where it was focusing its investigation.
An internal investigation led by CrowdStrike traced the hack to two groups associated with Russian intelligence, possibly working independently. Two other cybersecurity firms, Fidelis Cybersecurity and FireEye Inc., also confirmed the attribution to the Russian hackers, based on malware samples and other data from the DNC network.
‘Any Doubt’
“There isn’t any doubt that it was the Russians that broke into the DNC,” said James Lewis, a cybersecurity specialist and senior vice president at the Center for Strategic and International Studies in Washington. “It’s not as clear that the Russians are responsible for the leak.”
Lewis said government experts have to exclude all other possibilities, including that there was a separate loss of information and the leaker is using the Russians as cover.
“It’s consistent with their practice. The Russians have done things like this before,” Lewis said. “But the evidence on the leak itself just isn’t as clear at this point.”
Republican presidential nominee Donald Trump ridiculed allegations that Russia released the DNC e-mails to benefit his campaign.
“The new joke in town is that Russia leaked the disastrous DNC e-mails, which should never have been written (stupid), because Putin likes me,” Trump said on Twitter Monday.
Seeking Vulnerabilities
Obama administration officials deferred questions on the investigation to the FBI. Speaking more generally, White House spokesman Josh Earnest said “We know that there are a number of actors, both state and criminal, that are looking for vulnerabilities in the cybersecurity of he United States. And that includes Russia."
Clinton campaign manager Robby Mook was also cautious in addressing questions about the potential role of Russians hackers in the breach.
“I want to let the experts speak on this,” Mook said Monday, adding that analysts have concluded the hack was “perpetrated by Russian state actors.” He said that “considering the calculated release,” experts have inferred that “it was the Russians who perpetrated this leak for the purpose of helping Donald Trump and hurting Hillary Clinton.”
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DIRTY WORK
07.26.16 1:00 AM ET
Russia’s Long History of Messing With Americans Minds Before the DNC Hack
Russia’s intelligence services have a long history of mingling sinister fiction with shards of fact and leaking through third parties to cover their tracks.
Lord Byron observed, in skewering one of his favorite poetic targets of derision, that while the English have no word so good as the French longueurs to describe tedious, uninterrupted stretches of writing, they nevertheless “have the thing.” Similarly, there is no proper American term for what Russian intelligence callsaktivniye meropriyatiye, or active measures, but by now most Americans really ought to be used to the thing, as it might well decide our next presidential election.
As The Daily Beast reported Monday, the FBI now suspects that a year-long hacking of the Democratic National Committee’s emails and their subsequent publication on WikiLeaks was actually the work of Russian intelligence.
The Kremlin, it is now widely believed, is trying to rob Hillary Clinton of her chance to be the next commander-in-chief because its favored candidate is Donald Trump, a mercenary authoritarian who behaves and sounds like a forbidding cross betweenVladimir Zhirinovsky and a Las Vegas pit boss. Trump, like Putin, wants to eviscerate NATO, dispense with “lecturing” the Russians on democracy and human rights, andlift any and all diplomatic or economic penalties on Moscow for its invasion and occupation of Ukraine.
Trump, like Putin, draws on a staff of consiglieri and advisors who have extensive experience in the financial and political sectors of the post-Soviet sphere, usually on behalf of those who wish the Berlin Wall had never come down.
According to a mounting pile of compelling news reports, the first of which broke in The Washington Post in June, two separate agencies of Russian spy services, the domestic FSB and the military GRU, gained access, independently of each other and without the other’s cognizance, to the DNC correspondence beginning in the summer of 2015 (the FSB) and followed by an intrusion registered in April of this year (the GRU).
Already, the “leaked” emails, showing the DNC cooking up ways to sink Bernie Sanders’s campaign on the basis of his suspected atheism, have deepened a schism within the Democratic Party on the eve of its nominating convention. DNC Chairwoman Debbie Wasserman Schultz is out of a job come Friday, and meanwhile she’s busy being booed at luncheons and confabs by incensed Bernie supporters in Philadelphia. Trump is already capitalizing on these embarrassments by egging on the Bernie Bros to stand their ground and reaffirming the “rigged” nature of the electoral system.
If Moscow Centre is indeed behind this bit of cyber skulduggery, then it represents the boldest intrusion ever by a past and present Cold War adversary into America’s political decision-making.
Indeed, the style and purpose of this intrusion bears an uncanny resemblance to old Cold War tradecraft.
An active measure is a time-honored KGB tactic for waging informational and psychological warfare designed, as retired KGB General Oleg Kalugin once defined it, “to drive wedges in the Western community alliances of all sorts, particularly NATO, to sow discord among allies, to weaken the United States in the eyes of the people in Europe, Asia, Africa, Latin America, and thus to prepare ground in case the war really occurs.”
The most common subcategory of active measures is dezinformatsiya, or disinformation: feverish if believable lies cooked up by Moscow Centre and planted in friendly media outlets to make democratic nations look sinister.
As my colleague Peter Pomeranzev and I discovered in researching our report on the Kremlin’s weaponization of money, culture, and information, some of the most famous conspiracy theories to bombinate in backrooms, basements, street corners, college dorms were actually whole-cloth inventions of the Cheka.
For instance, a story suggesting that Jimmy Carter had a “Secret Plan to Put Black Africans and Black Americans at Odds”; that the United States used chemical weapons in the Korean War; that AIDS was an invention of the CIA; that the Jonestown massacre was by U.S. intelligence; that the United States tried to kill Pope John Paul II; that Barry Goldwater and the John Birch Society were in cahoots to mount a coup d’état in Washington, D.C.
Many in 1963 doubted that Lee Harvey Oswald acted alone in murdering John F. Kennedy; but only a precious few ever saw their paranoid Grassy Knoll explanation transformed into a Hollywood blockbuster. American researcher Max Holland found that the KGB fabricated letter that got planted in the Italian newspaper Paese Serawas the first to allege that one of the suspects for the Kennedy assassination, Claw Shaw, a New Orleans businessman, was actually an operative of Langley. The New Orleans district attorney, Jim Garrison, got hold of a copy of that letter and while he never cited it in court, his film version Kevin Costner most certainly did in the paranoid Oliver Stone movie JFK.
Vasili Mitrokhin, a retired KGB archivist who defected to the West and smuggled out six enormous cases of Soviet foreign intelligence files, later recorded that the “KGB could fairly claim that far more Americans believed some version of its own conspiracy theory of the Kennedy assassination, involving a right-wing plot and the U.S. intelligence community, than still accept the main findings of the Warren Commission.”
Mitrokhin’s archive also settled another long-running debate about an actual CIA provocateur, the defector Philip Agee, whose KGB codename was PONT.
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Agee had been an officer stationed in Latin America and was forced to quit the Agency because he was drunk, loose with government money, and all too eager to take to bed the many wives of the many American diplomats in whose company he traveled.
Then, in 1973, as Mitrokhin and Christopher Andrew recount in The Sword and the Shield, the first volume of a two-part history on the exfiltrated secrets of the USSR’s special services, Agee walked right into the rezidentura in Mexico City.
He offered the Russians “reams of information about CIA operations,” according to Oleg Kalugin, who was then head of the KGB First Chief Directorate’s counterintelligence division. But the Soviets thought this too good to be true; Agee struck them as a “dangle,” a deep cover operative posing as a would-be defector in order to hawk faulty intelligence. So they turned him away. He next tried the Cubans, who found him legitimate.
Because of Havana’s close security relationship with Moscow (one that had actually been coerced by the Soviets through anti-Castro espionage and economic blackmail), Cuba’s own intelligence service, the DGI, shared their new asset with their KGB masters. “As I sat in my office in Moscow reading reports about the growing list of revelations coming from Agee,” Kalugin later wrote, “I cursed our officers for turning away such a prize.”
Agee’s first act as a Soviet spy was to name names of his old American comrades in a bestselling book titled Inside the Company: CIA Diary. It was first released in Britain in 1975 and possibly curated by Agee’s KGB and DGI handlers. He outed 250 CIA officers and agents before he set about exposing those stationed in the capital of America’s closest Cold War ally, London, where he now took temporary residence, much like another controversial “whistleblower.”
Agee was eventually expelled from Britain, owing to U.S. diplomatic pressure, but not before becoming a left-wing celebrity, feted and defended by a raft of Labour MPs and The Guardiannewspaper.
Miktrokhin and Andrew are generous in acquitting most of Agee’s admirers as mere useful idiots rather than duplicitous coconspirators. Nevertheless, PONT’s KGB file boasted of his stature as a putative transparency advocate and martyr of free speech, notwithstanding his clandestine and destructive work on behalf of a communist superpower: “Campaigns of support for PONT,” the file noted, “were initiated in France, Spain, Portugal, Italy, Holland, Finland, Norway, Mexico and Venezuela.”
In 1978, Agee began publishing his own newsletter, Covert Action Information Bulletin, a WikiLeaks-style journal designed, in Agee’s own words, as a “worldwide campaign to destabilize the CIA through exposure of its operations and personnel.”
The Bulletin was a KGB and DGI operation; the entire project was given the codename RUPOR (Russian for “mouthpiece”). Besides its internationally recognizable founder, other editors included other Americans, such as the journalist Louis Wolf, and featured contributions from other former CIA officers, although Miktrokhin and Andrew state that there’s no evidence that anyone other than Agee knew which foreign governments were actually underwriting the Bulletin.
As an active measure, the pamphlet was a mixture of credible stolen intelligence anddezinformatsiya. Sometimes the KGB would feed Agee real morsels from Langley; elsewhere, when these proved impossible to come by, he was instructed to seek out open-source material “ranging from readers’ letters to crises around the world which could be blamed on the CIA,” as Mitrokhin and Andrew write. This is how the Jonestown massacre became an American crime.
The Russians and Cubans even set the schedule for when Western national security secrets, be they authentic or sham, were to be disgorged. Around the time of the Bulletin’s first issue, Agee and Wolf started handing out copies of a new book, Dirty Work: The CIA in Western Europe, which carried the names of another 700 CIA employees scattered across the free countries of the continent. The success of that volume encouraged a sequel, which was duly produced as Dirty Work II: The CIA in Africa. Its publication, the KGB and DGI jointly decided, would coincide with a Castro-hosted conference in Havana for the non-aligned nations in September 1979.
Closer to our own time, following the invasion of Ukraine, we have seen the recrudescence of active measures as a form of Russian “hybrid warfare.” Sometimes they’re aimed at the United States, as when a phone call between Victoria Nuland, the assistant secretary of state for European and Eurasian Affairs, and Geoffrey Pyatt, the U.S. ambassador to Ukraine, was suddenly uploaded to the internet and framed to show a shadowy plot to not only influence the course of Ukraine’s post-Yanukovych period but also drive a wedge between Washington and Brussels.
(That phone call had Nuland at one point say that the UN ought to be brought in to facilitate a peace deal deal and “fuck the EU.”) Few doubt who intercepted this communication and posted it online; Nuland herself, in conversation with the BBC, smilingly called “the tradecraft really quite impressive.”
A subsequent phone exchange between former Estonian Foreign Minister Urmas Paet and former European Higher Commissioner for Foreign Affairs Catherine Ashton appeared to call into question who, exactly, did the sniping on Kiev’s Independence Square during the Maidan Revolution—with the suggestion being that it was the opposition, not the Yanukovych government shooting civilians. (Paet had talked to a Ukrainian doctor who tended to the wounded on the square and had either misunderstood where she said the gunfire had come from or was just relaying to Ashton alternative theories.)
Finally, everyone remembers how the NSA listened in on German Chancellor Angela Merkel’s private cell phone calls, a bombshell report, tied to the Edward Snowden leaks, which put a frost on U.S.-German relations. Except that it seems the entire story, first reported in Der Spiegel (and primarily written by a WikiLeaks associate, Jacob Appelbaum) was wrong—even if the vast majority of Snowden’s disclosures were genuinely and self-evidently scandalous.
Germany’s top prosecutor, Harald Range, opened an investigation in June 2014 and closed it a year later, citing a lack of evidence. “The documents published in the media so far that come from Edward Snowden also contain no evidence of surveillance of the mobile phone used by the chancellor solid enough for a court,” Range said. Prior to closing the case, he had noted that the supposed gotcha document proving the NSA was listening in on an allied head of state’s personal conversations was in fact “not an authentic surveillance order by the NSA. It does not come from the NSA database.”
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Emails sent by Guccifer 2.0 to The Hill show evidence that the hacker used Russian-language anonymity software — a language he has claimed he could not read or even recognize.
The news comes amid mounting reports linking Guccifer 2.0’s hack of Democratic National Committee (DNC) emails to Russian intelligence.
Guccifer 2.0 communicates with journalists using different disposable web-based email accounts each time. With The Hill, he
communicated
using addresses from ProtonMail and <a href="http://Mail.com" rel="nofollow">Mail.com</a>.
To further protect his anonymity, he connected to the webmail accounts using a Virtual Private Network (VPN). Users send VPN servers the address of a site they would like to reach, and the VPN accesses it in their stead – masking the users' internet addresses.
Metadata of emails sent from Guccifer 2.0 to The Hill was shared with the cybersecurity firm ThreatConnect. In the interest of protecting Guccifer 2.0’s identity, his account information was not included.
The <a href="http://Mail.com" rel="nofollow">Mail.com</a> metadata includes the internet address of who is mailing outgoing messages — in Guccifer 2.0’s case, the VPN.
Vocativ reported
Tuesday that ThreatConnect had discovered the hacker used a predominantly-Russian-language VPN when he corresponded with them through a French AOL account.
ThreatConnect matched
that same internet address from the same VPN to the <a href="http://Mail.com" rel="nofollow">Mail.com</a> email.
VPNs often let users route their traffic through a variety of servers in a variety of countries. Guccifer 2.0 routed his traffic through a French internet address operated by the Elite VPN service.
But that French internet address was not available for public use – it was not one of the French servers Elite VPN allowed its clients to select. Instead, the French server appears to have only been used by a select, criminal clientele in the past, including text message scammers.
Elite VPN’s website is written in Russian, with links to English translations. Parts of the site, including graphics, are only written in Russian, and when ThreatConnect went through the process of signing up for an account, they found the signup process written entirely in Russian.
Guccifer 2.0 has long claimed to be Romanian. In an
online chat interview with Motherboard
, Guccifer 2.0 claimed not to know how to speak Russian. In it, Motherboard asked a question in Russian, and Guccifer replied "What's this? Is it russian?"
The site then asked if he understood Russian.
"R u kidding?" wrote Guccifer 2.0.
In the same interview, when forced to answered questions in Romanian, he used such clunky grammar and terminology that experts believed he was using an online translator.
The two active payment services for Elite VPN are options that are popular in Russia, including the Moscow-based Web Money. The site also includes a link to a long-defunct Costa Rican payment processor that was seized by law enforcement in 2013.
There are other anonymity services besides VPNs — including Tor — and a large international community of other VPNs both better known and better esteemed than Elite VPN. But the Edward Snowden documents and recent investigations by U.S. law enforcement show a U.S. interest in cracking through the anonymity of these so-called proxy servers.
“They might be making sure they are leveraging proxy infrastructure within their own borders,” said Rich Barger, ThreatConnect director of threat intelligence.
The fact that Guccifer 2.0’s VPN is Russian is not the first indicator that Russia was involved in the attack on the DNC. The email hack leveraged the same tools, methods and command servers seen in other attacks linked to Russian intelligence, including on the German Parliament.
“The noose is tightening around Russia,” said Barger.
Guccifer 2.0 leaked a number of documents to the press, including convention strategies, donor information and opposition research. The first few packages of files were released to the public directly; the last two were first sent to The Hill. Guccifer has also claimed responsibility for leaking emails to WikiLeaks, something WikiLeaks refuses to confirm or deny.
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Sergei Shoigu, the Russian defense minister, said in a 2014 speech that such uprisings were “used as an excuse to replace nationally oriented governments with regimes controlled from abroad.”
The Kremlin felt encircled and threatened by what it took to be a vast American conspiracy whose ultimate goal, it concluded, was the subjugation or outright destruction of the Russian state.
In December 2011, thousands gathered in Moscow to protest legislative elections that had been marred by accusations of fraud. The demonstrations didn’t come to much, but they engendered afear among Russian leaders that they were next.
President Vladimir V. Putin, at a news conference in 2014, warned that the West was seeking to “defang” the Russian bear — to remove its nuclear weapons so as to gain access to its natural resources.
“Once they’ve taken out his claws and his fangs, then the bear is no longer necessary,” Mr. Putin said. “The issue is that we are protecting our sovereignty and our right to exist.”
Russian military planners, apparently obsessed with such fears, concluded that their best defense would be to go on the offense. Believing that the Americans were already conducting a clandestine war through intelligence operations, media disinformation, and deniable proxy forces, they set out to do the same.
The phrase “hybrid war” — a common label in the West for Russia’s actions — was first used by Russian analysts to describe the supposed American tactics they believed they were countering. They called their own strategy something different: “new generation war.”
Projecting power beyond Russia’s strength
Even before this doctrine became formalized, Russia had developed tools of coercion and subterfuge, providing a model for wider usage.
As Russian power has resurged under Mr. Putin, the country has often used asymmetrical methods to assert its interests, particularly in the former Soviet republics it still considers its “near abroad” and rightful zone of influence.
In 2007, amid tensions with the small Eastern European nation of Estonia, Russian media falsely reported that members of Estonia’s Russian minority were being drugged and tortured by police, contributing to riots that injured several people and killed one. The next day, cyberattacks, attributed to a pre-Kremlin Russian group, forced many of Estonia’s major institutions offline.
At no point, in the 2007 episode, did Russia commit an act of military aggression against its neighbor. Yet Estonian leaders say these actions were meant as a message: Even if their country had joined NATO and the European Union, Moscow was still the boss.
These sorts of tools allowed Russia to project power beyond its strength and, just as importantly, to assert its interests abroad despite Western military and political dominance.
To paraphrase Mark Galeotti, a New York University professor who studies Russia’s military, this is a country whose economy is smaller than Canada’s or South Korea’s, yet is seeking a great power role akin to China or the United States. Traditional methods won’t cut it.
Information struggle and Maidan technology
Russia deployed its "new generation war” to startling effect in early 2014, when, amid Ukraine’s political crisis, it seized and subsequently annexed the Ukrainian region of Crimea.
While that action is most remembered for the “little green men” — unmarked Russian special forces who seized key locations in a clandestine invasion — there were subtler components as well.
Russian state news media flooded Crimea’s airwaves with false stories about neo-Nazis taking over Ukraine and systematically attacking ethnic Russians, who are a majority in Crimea. As a result, many Crimeans welcomed the unmarked Russian troops, believing they were being saved from possible ethnic cleansing.
Dmitry Adamsky, an Israeli analyst, wrote in a 2015 report that this “information struggle” is central to Russia’s new strategy.
This information war, he wrote, “comprises both technological and psychological components designed to manipulate the adversary’s picture of reality, misinform it and eventually interfere with the decision-making process of individuals, organizations, governments and societies.”
While this was especially visible in Crimea, Mr. Adamsky warned that it was also deployed in peacetime and against any target where Moscow seeks influence. It may be intended to pursue a “strategic goal,” such as the weakening of pro-American political parties in Europe, or to simply foment a degree of instability that weakens adversaries.
Mr. Adamsky described this as a form of “subversion” that “aims to deceive the victim, discredit the leadership, and disorient and demoralize the population and the armed forces.”
That sheds light on why Russia might want to release Democratic National Committee emails, whose greatest effect is creating a kerfuffle within Democratic politics. It’s not as if the resignation of the party chairwoman, Debbie Wasserman Schultz, was some strategic Russian ambition.
While some observers say Moscow sees a potential friend in Donald J. Trump, it would also be well within Russian strategy to stir up trouble just to stir up trouble. This is what Mr. Adamsky calls “managed stability-instability” — low-level confusion and disunity that Russia could perhaps one day exploit.
Russia has long seen itself as the victim of these very tactics, accusing Western governments of using vague “Maidan technology,” named for the square where Ukraine’s 2014 protests began, to create “managed chaos” in targeted countries. Embarrassing stories, such as the Russian doping scandal and the Panama Papers, are seen as American information warfare meant to weaken Moscow.
In this view, Kremlin leaders could see releasing internal Democratic emails as a tit-for-tat retaliation in the information struggle. Such a thing would make little sense in the Western conception of geopolitics. But as Mr. Adamsky wrote in his 2015 study, Americans have long tried to conceptualize Russian strategy within Western ways of thinking, when it is anything but.
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The internet has changed—well, everything, and that includes buying a car. We take a look at the pros and cons of buying a car in the Information Age.
Anybody who bought a car before the turn of the century probably remembers that special spot in the library.
You know the one, usually on the ground floor near the entrance, where the racks of Kelley Blue Books were kept. Like porch lights to moths, those well-thumbed tomes would pull in prospective car buyers in swarms, each of us looking for the informational edge that would make all the difference in what would be one of the most important purchases in our lives.
Well, for about a generation now, that secret spot has been accessible to pretty much anyone with internet access. Now, potentially every car buyer out there is as informationally equipped as the kind of obsessive who back in the day took time off work to research before trekking over to the dealership.
"Everybody knows that the internet makes everybody an expert at pretty much everything, right?” says Mitch Solomon, host of Doing Donuts, the car culture and design podcast out of Art Center Design College in Pasadena. “One thing we know for sure—and this is true whether you are buying a new car or selling Mars Attacks toys—is the actual value of the item. That is a fundamental change from the past and it does change to a degree—though not as much as you might think—the interactive back-and-forth between car buyer and car seller.”
Adds Solomon, “There are some things that never change, and some things that do.”
What has changed? For starters, that wealth of information has shifted the balance of power to the other side of the dealership desk.
“If a buyer or shopper is motivated, they can get information on a very, very granular level about vehicles,” explains Eric Noble, founder of the automotive consulting firm The Carlab, professor at Art Center Design College, and co-host of Doing Donuts. “Informationally, the buyer has the upper hand.”
And with negotiations for features and pricing also done online now—at Scion and AutoNation, for instance—it’s much easier for a consumer to come prepared to the showroom, or to avoid negotiating in person altogether.
That advantage is less clear, says Noble, during the transaction itself, which is almost always done in the real dealership and not a “virtual” one, the same dealer floors that dominated car buying in the pre-internet days.
“It is kind of like asking whether radar detectors have given speeders the upper hand against police or are they just escalating the arms race?” asks Noble. “Yes, buyers know invoice now, but they don’t know the marketing allowance, or whether there is a program where the dealer is incentivized to sell a tenth unit that month. That part is still very much cat and mouse.”
To that end, many of the old axioms that could apply to the old days of car buying—buy at the end of the month rather than the beginning, for example—still apply.
Where You Live = What You Drive
The information age has had a profound effect on brand loyalty. The days of being a Buick family or a Toyota family are in the past.
“The consumer has so much information now, and brands had always been a surrogate for information,” says Noble. “When information exists, the importance of brand diminishes.”
However, in the social age that we live in, regional biases play a huge part in which new cars people chose to buy. You can expect certain cars, and perhaps dealer incentives, to be more plentiful in certain parts of the country. Think Audis in the Bay Area, Subarus in the Northeast, or the abundance of Fiat 500s in Los Angeles.
“Societal sensibilities have taken the place of brand loyalty,” says Noble. “If I am a San-Jose-type person in the market for a luxury car, I am going to gravitate towards a Tesla over a Mercedes Benz, because that is what a San Jose type of person does. It’s more [about] societal expectations.”
The vast world of data science—tapping into the limitless consumer information that exists in the Cloud—is the next threshold to cross in the world of buying new cars in a truly modern way. When it finally arrives, it may make the way we buy cars now seem as quaint as the little spot in the library seemed not so long ago.
“One thing that hasn’t happened yet, but will at some point, is that the Cloud will start to work for us,” says Noble. “It hasn’t completely entered the conversation for consumers, the way it has, say, in the way we commute, with maps like Waze. On the major sites, you’re getting closer to that. They have begun to aggregate real time transactions. The hold up is figuring out how to communicate and generate that. But we are moving closer to that everyday.”
Kelley Blue Book is your all-purpose resource for your new car journey. Visit KBB.com to get New Car Smart.
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The idea of Russia hacking a U.S. political party's emails may sound like a Cold War spy novel, but it fits into a larger pattern of how Putin operates.
"It is true that some populist parties in Europe have received funding from Russian sources," said Christopher Granville, co-founder of research firm Trusted Sources and former chief strategist at Moscow-based investment bank United Financial Group.
The strongest example of the Kremlin's effort to buy support was when Marine Le Pen, the far-right leader of France's National Front, accepted financing from Russian sources via a Moscow-based bank.
Putin's reach goes beyond France. Fiona Hill, a director at Brookings Institution, pointed out that Berlin has been concerned about unconfirmed payments allegedly made to right-wing populist parties in Germany, including the Alternative fur Deutschland. But tracking the money trail has been increasingly difficult.
Analysts say Russia's activity in Europe has increased since it was sanctioned economically for its military intervention in Ukraine. The long-standing sanctions continue to derail its economy, despite a partial rebound in oil prices this year.
"Russia has come under economic attack from Europe through sanctions and seeks to bolster political forces in Europe that are more sympathetic to the Russian point of view," Granville said.
Hill agrees. "There is a concerted effort by Putin and the Kremlin to weaken the sanctions regime and to chip away at the individual bases of support of these sanctions," said Hill, who formerly covered Russia at the National Intelligence Council.
There's further speculation, although unconfirmed, that Putin has funded antifracking campaigns in Romania and in parts of Eastern Europe in an effort to guarantee the region's dependence on Russian oil, its main commodity.
"Russia's support (whether financial or simply rhetorical) for European parties and organizations that question the role of the European Union, NATO and the United States is meant to strengthen the forces that challenge the post-Cold War political order and, in this way, advance Russia's interests and increase its influence," said Olga Oliker, senior adviser and director of the Russia and Eurasia Program the Center for Strategic and International Studies.
Russian bankrolling of political groups in countries it sees as opponents is an ongoing threat in the eyes of both Brussels and Washington. Democratic claims that the Russians are to blame for the leaked emails will likely result in a sharper divide between the West and Russia.
The wild card in all of this is if Republican candidate Donald Trump becomes president.
"The idea is that Putin-Trump would be a win-win for the Kremlin, as they have mutual interests and alliances," said Hill.
Trump's questioning of American support for NATO resonates with Putin, who has been aggressively trying to weaken the alliance, Kremlin-watchers say.
Correction: This story was revised to correct a typo in Vladimir.
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A potential Russian connection to the politically explosive hack of Democratic National Committee files is becoming clearer, with a former senior intelligence official who ran computer security for the Defense Intelligence Agency telling Fox News the hackers left behind evidence on the servers that points to sophisticated techniques associated with the country.
The trail of evidence on the DNC servers includes malicious code used to steal emails and documents, according to Bob Gourley, co-founder and partner at strategic consulting firm Cognitio and former chief technology officer (CTO) at the DIA.
“Forensic evidence points pretty clearly to a very sophisticated nation state,” he said. “This is a well-resourced adversary. Specifically, they are using the same tools and techniques previously associated with Russia.”
Gourley said they used a recently established web domain, registered to a non-existent entity, to steal the data, another signature of Russian-backed hackers. He said nothing about the attack points to an individual hacker.
Aside from the physical evidence linking to Russia, Gourley said the timing also suggests a political motivation. Foreign hackers would want to steal data to understand the policies of a potential Democratic president, but if that were the only motivation, there would no reason to release the files on the eve of the convention.
Other sources familiar with the DNC email dump also told Fox News the communications likely were seized in a hacking operation with ties to the Russian government.
Fox News earlier reported that cybersecurity firm CrowdStrike discovered two separate Russian intelligence groups had infiltrated separate parts of the DNC's computer network, successfully seizing email communications and opposition research on Republican presidential nominee Donald Trump, before being kicked off the network.
The latest comments bolster claims, seized upon by some in the Hillary Clinton camp, that the Russians were involved in the breach. The subsequent WikiLeaks document dump just days before the start of the Democratic National Convention caused a major embarrassment for the party, with a number of leaked emails showing party officials criticizing or seemingly working to undermine Vermont Sen. Bernie Sanders’ primary bid against Clinton.
The controversy led to DNC Chairwoman’s Debbie Wasserman Schultz’ resignation on the eve of the convention kick-off.
Trump, meanwhile, has brushed off any suggestion that Russia was involved and trying to help his presidential campaign.
He tweeted: “The new joke in town is that Russia leaked the disastrous DNC e-mails, which should never have been written (stupid), because Putin likes me.”
Julian Assange, the founder of WikiLeaks which released the emails, also told NBC News there is no evidence of Russian involvement.
Separately, Fox News was told the DNC was warned by government agencies about a non-specific threat to their systems before the breach, based on the targeting of the State Department and White House. But no significant action was taken.
The FBI is investigating the breach.
“A compromise of this nature is something we take very seriously, and the FBI will continue to investigate and hold accountable those who pose a threat in cyberspace,” the bureau said in a statement.
Fox News’ Matthew Dean contributed to this report.
Catherine Herridge is an award-winning Chief Intelligence correspondent for FOX News Channel (FNC) based in Washington, D.C. She covers intelligence, the Justice Department and the Department of Homeland Security. Herridge joined FNC in 1996 as a London-based correspondent.
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Sen. Bernie Sanders delivers remarks on the first day of the Democratic National Convention at the Wells Fargo Center, July 25, 2016 in Philadelphia, Pennsylvania. (Photo by Alex Wong/Getty Images)
On a night when the narrative was all about the Bernie or Bust crowd, the Vermont senator’s task—to unite his supporters behind presumptive nominee Hillary Clinton—was a tall order.
So Bernie Sanders took the stage at the Democratic National Convention tonight to deliver a passionate speech celebrating his own campaigning, validating the disappointment in its failure to win, and enthusiastically backing the last woman standing for president this November.
“Hillary Clinton will make an outstanding president and I am proud to stand with her here tonight,” he closed tonight, to applause instead of the boos that met him earlier in the day and dogged speakers throughout the night, despite his own pleas to his supporters not to demonstrate against the nominee.
By the end of the night, with the help of a soaring speech by Michelle Obama, it seemed the convention that this just this afternoon and evening was wracked with division had come together, mostly. Whether that will hold for the rest of the week—and whether Clinton’s name will stop being met with boos—remains to be seen.
But Sanders did his part, chastising those who have insisted they can never vote for Clinton, who will face Republican nominee Donald Trump in November. Ms. Clinton, he said, believes in climate change and will fight it; she will roll out a plan reached with Sanders to make public college tuition free for middle class families; she will continue his mission to remove money from politics by appointing justices that will overturn Citizens United—as well as protecting immigrants and LGBT people and minorities.
“If you don’t believe this election is important, if you think you can sit it out, take a moment to think about the Supreme Court justices that Donald Trump would nominate and what that would mean to civil liberties, equal rights and the future of our country,” Sanders urged.
He praised Clinton on a litany of issues: healthcare, climate change, income inequality, while still noting they had their differences. The speech contained passages the faithful had heard from Sanders before, including at his endorsement of Clinton. In the crowd, some of his supporters wept as he spoke about the political revolution they had started and promised it would be bigger than any one election.
“Election days come and go. But the struggle of the people to create a government which represents all of us and not just the 1 percent—a government based on the principles of economic, social, racial and environmental justice—that struggle continues,” he promised. “And I look forward to being part of that struggle with you.”
But for this election, he argued, there was simply one choice. And when he delivered it, the cheers overwhelmed the boos—even if they were still there, smattered across the arena.
“This election is about which candidate understands the real problems facing this country and has offered real solutions—not just bombast, not just fear-mongering, not just name-calling and divisiveness,” he said, as the crowd began to chant his name.
The country needs leaders who will work for poor and working families, he argued, for children and the sick and people of all backgrounds.
“By these measures, any objective observer will conclude that—based on her ideas and her leadership—Hillary Clinton must become the next president of the United States,” he said.
Disclosure: Donald Trump is the father-in-law of Jared Kushner, publisher of Observer Media.
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