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			by Joseph Menn 
			February 16, 2015 
			
			from
			
			Reuters Website 
			  
			  
			  
			
			
			  
			
			A National Security 
			Agency (NSA) data gathering facility 
			
			is seen in Bluffdale, 
			about 25 miles (40 kms) south of Salt Lake City, Utah,  
			
			December 17, 2013.
			 
			
			Photo: REUTERS/Jim 
			Urquhart 
			 
  
			
			 
			(Reuters) 
			  
			
			The U.S.
			
			National Security Agency (NSA) 
			has figured out how to hide spying software deep within hard drives 
			made by Western Digital, Seagate, Toshiba and other top 
			manufacturers, giving the agency the means to eavesdrop on the 
			majority of the world's computers, according to cyber researchers 
			and former operatives. 
			 
			That long-sought and closely guarded ability was part of a cluster 
			of spying programs discovered by
			
			Kaspersky Lab, the Moscow-based 
			security software maker that has exposed a series of Western 
			cyber-espionage operations. 
			 
			Kaspersky said it found personal computers in 30 countries infected 
			with one or more of the spying programs, with the most infections 
			seen in Iran, followed by Russia, Pakistan, Afghanistan, China, 
			Mali, Syria, Yemen and Algeria.  
			  
			
			The targets included, 
			
				
			 
			
			...Kaspersky said: 
			  
			
			 
			
			  
			  
			
			 
			The firm declined to publicly name the country behind the spying 
			campaign, but said it was closely linked to
			
			Stuxnet, the NSA-led cyber-weapon 
			that was used to attack Iran's uranium enrichment facility. 
			 
			  
			
			The NSA is the agency responsible for 
			gathering electronic intelligence on behalf of the United States. 
			 
			A former NSA employee told Reuters that Kaspersky's analysis was 
			correct, and that people still in the intelligence agency valued 
			these spying programs as highly as Stuxnet.  
			  
			
			Another former intelligence operative 
			confirmed that the NSA had developed the prized technique of 
			concealing spyware in hard drives, but said he did not know which 
			spy efforts relied on it. 
			 
			NSA spokeswoman Vanee Vines declined to comment. 
			 
			Kaspersky published the technical details of its research on Monday, 
			which should help infected institutions detect the spying programs, 
			some of which trace back as far as 2001. 
			  
			  
			
			
			  
			
			Employees work at the 
			headquarters of Kaspersky Labs,  
			
			a company which 
			specializes in the production of  
			
			antivirus and 
			internet security software,  
			
			in Moscow July 29, 
			2013. 
			Credit: REUTERS/Sergei Karpukhin 
			
			 
			 
			The disclosure could further hurt the NSA's surveillance abilities, 
			already damaged by massive leaks by former contractor Edward 
			Snowden. Snowden's revelations have hurt the United States' 
			relations with some allies and slowed the sales of U.S. technology 
			products abroad. 
			 
			The exposure of these new spying tools could lead to greater 
			backlash against Western technology, particularly in countries such 
			as China, which is already drafting regulations that would require 
			most bank technology suppliers to proffer copies of their software 
			code for inspection. 
			 
			Peter Swire, one of five members of U.S. President Barack Obama's
			Review Group on Intelligence and Communications Technology, 
			said the Kaspersky report showed that it is essential for the 
			country to consider the possible impact on trade and diplomatic 
			relations before deciding to use its knowledge of software flaws for 
			intelligence gathering. 
			
				
				"There can be serious negative 
				effects on other U.S. interests," Swire said. 
			 
			  
			
			 
			 
			TECHNOLOGICAL 
			BREAKTHROUGH 
			 
			According to Kaspersky, the spies made a technological breakthrough 
			by figuring out how to lodge malicious software in the obscure code 
			called firmware that launches every time a computer is turned on. 
			 
			Disk drive firmware is viewed by spies and cyber-security experts as 
			the second-most valuable real estate on a PC for a hacker, second 
			only to the BIOS code invoked automatically as a computer boots up. 
			
				
				"The hardware will be able to infect 
				the computer over and over," lead Kaspersky researcher Costin 
				Raiu said in an interview. 
			 
			
			Though the leaders of the still-active 
			espionage campaign could have taken control of thousands of PCs, 
			giving them the ability to steal files or eavesdrop on anything they 
			wanted, the spies were selective and only established full remote 
			control over machines belonging to the most desirable foreign 
			targets, according to Costin Raiu.  
			  
			
			He said Kaspersky found only a few 
			especially high-value computers with the hard-drive infections. 
			 
			Kaspersky's reconstructions of the spying programs show that they 
			could work in disk drives sold by more than a dozen companies, 
			comprising essentially the entire market.  
			  
			
			They include, 
			
				
			 
			
			Western Digital, Seagate and Micron said 
			they had no knowledge of these spying programs. Toshiba and Samsung 
			declined to comment. IBM did not respond to requests for comment. 
  
			  
			  
			
			 
			GETTING THE 
			SOURCE CODE 
			 
			Raiu said the authors of the spying programs must have had access to 
			the proprietary source code that directs the actions of the hard 
			drives.  
			  
			
			That code can serve as a roadmap to 
			vulnerabilities, allowing those who study it to launch attacks much 
			more easily. 
			
				
				"There is zero chance that someone 
				could rewrite the [hard drive] operating system using public 
				information," Raiu said. 
			 
			
			Concerns about access to source code 
			flared after a series of high-profile cyber-attacks on Google Inc 
			and other U.S. companies in 2009 that were blamed on China. 
			 
			  
			
			Investigators have said they found 
			evidence that the hackers gained access to source code from several 
			big U.S. tech and defense companies. It is not clear how the NSA may 
			have obtained the hard drives' source code.  
			  
			
			Western Digital spokesman Steve 
			Shattuck said the company, 
			
				
				"has not provided its source code to 
				government agencies."  
			 
			
			The other hard drive makers would not 
			say if they had shared their source code with the NSA. 
			 
			Seagate spokesman Clive Over said it has, 
			
				
				"secure measures to prevent 
				tampering or reverse engineering of its firmware and other 
				technologies."  
			 
			
			Micron spokesman Daniel Francisco 
			said the company took the security of its products seriously and, 
			
				
				"we are not aware of any instances 
				of foreign code." 
			 
			
			According to former intelligence 
			operatives, the NSA has multiple ways of obtaining source code from 
			tech companies, including asking directly and posing as a software 
			developer. 
			  
			
			If a company wants to sell products to 
			the Pentagon or another sensitive U.S. agency, the government can 
			request a security audit to make sure the source code is safe. 
			
				
				"They don't admit it, but they do 
				say, 'We're going to do an evaluation, we need the source 
				code,'" said Vincent Liu, a partner at security consulting firm 
				Bishop Fox and former NSA analyst.  
				  
				
				"It's usually the NSA doing the 
				evaluation, and it's a pretty small leap to say they're going to 
				keep that source code." 
			 
			
			Kaspersky called the authors of the 
			spying program "The Equation Group," named after their embrace of 
			complex encryption formulas. 
			 
			The group used a variety of means to spread other spying programs, 
			such as by compromising jihadist websites, infecting USB sticks and 
			CDs, and developing a self-spreading computer
			
			worm called Fanny, Kasperky said. 
			 
			Fanny was like Stuxnet in that it exploited two of the same 
			undisclosed software flaws, known as "zero days," which strongly 
			suggested collaboration by the authors, Raiu said.  
			  
			
			He added that it was "quite possible" 
			that The Equation Group used Fanny to scout out 
			targets for Stuxnet in Iran and spread the virus. 
			  
			
			  
			
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