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China Breached Dozens of Pipeline Companies in Past Decade, U.S. Says

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The Biden administration disclosed previously classified details on Tuesday about the breadth of state-sponsored cyberattacks on American oil and gas pipelines over the past decade, as part of a warning to pipeline owners to increase the security of their systems to stave off future attacks.

From 2011 to 2013, Chinese-backed hackers targeted, and in many cases breached, nearly two dozen companies that own such pipelines, the F.B.I. and the Department of Homeland Security revealed in an alert on Tuesday. For the first time, the agencies said they judged that the “intrusions were likely intended to gain strategic access” to the industrial control networks that run the pipelines “for future operations rather than for intellectual property theft.” In other words, the hackers were preparing to take control of the pipelines, rather than just stealing the technology that allowed them to function.

Of 23 operators of natural gas pipelines that were subjected to a form of email fraud known as spear phishing, the agencies said that 13 were successfully compromised, while three were “near misses.” The extent of intrusions into seven operators was unknown because of an absence of data.

The disclosures come as the federal government tries to galvanize the pipeline industry after a ransomware group based in Russia easily forced the shutdown of a pipeline network that provides nearly half the gasoline, jet fuel and diesel that flows up the East Coast. That attack on Colonial Pipeline — aimed at the company’s business systems, not the operations of the pipeline itself — led the company to shut off its shipments for fear that it did not know what the attackers would be capable of next. Long gasoline lines and shortages followed, underscoring for President Biden the urgency of defending the United States’ pipelines and critical infrastructure from cyberattacks.

The declassified report on China’s activities accompanied a security directive that requires owners and operators of pipelines deemed critical by the Transportation Security Administration to take specific steps to protect against ransomware and other attacks, and to put in place a contingency and recovery plan. The exact steps were not made public, but officials said they sought to address some of the huge deficiencies found as they conducted reviews of the Colonial Pipeline attack. (The company, which is privately held, has said little about the vulnerabilities in its systems that the hackers exploited.)

The directive follows another in May that required companies to report significant cyberattacks to the government. But that did nothing to seal the systems up.

The newly declassified report was a reminder that nation-backed hackers targeted oil and gas pipelines before cybercriminals devised new ways of holding their operators hostage for ransom. Ransomware is a form of malware that encrypts data until the victim pays. The attack on Colonial Pipeline led it to pay about $4 million in cryptocurrency, some of which the F.B.I. seized back after the criminals left part of the money visible in cryptocurrency wallets. But that was, as one law enforcement official said, a “lucky break.” Another ransomware attack a few weeks later extracted $11 million from JBS, a producer of beef products; none of it was recovered.

Nearly 10 years ago, the Department of Homeland Security said in the declassified report, it began responding to intrusions on oil pipelines and electric power operators at “an alarming rate.” Officials successfully traced a portion of those attacks to China, but in 2012, its motivation was not clear: Were the hackers trolling for industrial secrets? Or were they positioning themselves for some future attack?

“We are still trying to figure it out,” a senior American intelligence official told The New York Times in 2013. “They could have been doing both.”

But the alert on Tuesday asserted that the goal was “holding U.S. pipeline infrastructure at risk.”

“This activity was ultimately intended to help China develop cyberattack capabilities against U.S. pipelines to physically damage pipelines or disrupt pipeline operations,” the alert said.

The alert was prompted by new concerns over the cyberdefense of critical infrastructure, brought to the fore with the attack on Colonial Pipeline. That breach set off alarms at the White House and the Energy Department, which found that the nation could have afforded only three more days of downtime before mass transit and chemical refineries came to a halt.

Mandiant, a division of the security firm FireEye, said the advisory was consistent with the Chinese-backed intrusions it tracked on multiple natural gas pipeline companies and other critical operators from 2011 to 2013. But the firm added one unnerving detail, noting that it “strongly” believed that in one case, Chinese hackers had gained access to the controls, which could have enabled a pipeline shutdown or could potentially set off an explosion.

While the directive did not name the victims of the pipeline intrusion, one of the companies infiltrated by Chinese hackers over that same time frame was Telvent, which monitors more than half the oil and gas pipelines in North America. It discovered hackers in its computer systems in September 2012, only after they had been loitering there for months. The company closed its remote access to clients’ systems, fearing it would be used to shut down American’s infrastructure.

The Chinese government denied it was behind the breach of Telvent. Congress failed to pass cybersecurity legislation that would have increased the security of pipelines and other critical infrastructure. And the country seemed to move on.

Nearly a decade later, the Biden administration says the threat of a hacking on America’s oil and gas pipelines has never been graver. “The lives and livelihoods of the American people depend on our collective ability to protect our nation’s critical infrastructure from evolving threats,” Alejandro N. Mayorkas, the homeland security secretary, said in a statement on Tuesday.

The May directive set a 30-day period to “identify any gaps and related remediation measures to address cyber-related risks” and report them to the T.S.A. and the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency.

Shortly after taking office, Mr. Biden promised that improving cybersecurity would be a top priority. This month, he met with top advisers to discuss options for responding to a wave of Russian ransomware attacks on American companies, including one on July 4 on a Florida company that provides software to businesses that manage technology for smaller firms.

And on Monday, the White House said that China’s Ministry of State Security, which oversees intelligence, was behind an unusually aggressive and sophisticated attack in March on tens of thousands of victims that relied on Microsoft Exchange mail servers.

Separately, the Justice Department unsealed indictments of four Chinese citizens on Monday for coordinating the hackings of trade secrets from companies in aviation, defense, biopharmaceuticals and other industries.

According to the indictments, China’s hackers operate from front companies, some on the island of Hainan, and tap Chinese universities not only to recruit hackers to the government’s ranks, but also to manage key business operations, like payroll. That decentralized structure, American officials and security experts say, is intended to offer China’s Ministry of State Security plausible deniability.

The indictments also revealed that China’s “government-affiliated” hackers had engaged in for-profit ventures of their own, conducting ransomware attacks that extort companies for millions of dollars.

Eileen Sullivan contributed reporting.

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26 million workers have gotten a raise thanks to the Fight for $15, this week in the war on workers

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The Fight for $15 kicked off in November 2012, with a relatively small—yet also historically large—group of New York City fast food workers making what seemed an audacious demand: $15 an hour minimum pay and a union. The latter goal hasn’t advanced much since then, but $15? That has become solidly mainstream, and has brought big wins. A new report from the National Employment Law Project quantifies just how big.

The federal minimum wage remains just $7.25 an hour, the same as it was not just in 2012 but in 2009. But between state and local minimum wage increases, and executive action raising the minimum wage for federal contract workers, NELP estimates that 26 million workers have gotten a raise. Nearly 12 million of those workers are Black, Latino, or Asian American. The added pay they’ve gotten amounts to $150 billion, with $76 billion going to Black, Latino, and Asian American workers.

Organizing works.


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Connect! Unite! Act! Let’s make plans for ‘Activism August’ in Washington, D.C., and across the U.S.

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MONDAY, AUGUST 2:  National Moral Monday rally in Washington, D.C.

This weekend in Texas, The Poor People’s Campaign finished their latest March for Democracy. Thousands of people participated in a 27-mile march from Georgetown to Austin, gathering in shifts of 125 to comply with recommended COVID-19 restrictions. You can find footage of speeches along the way by Bishop William Barber, former congressman and presidential candidate Beto O’Rourke, the Rev. Dr. Liz Theoharis and many other national and regional voting rights activists.

This Monday, August 2, the Poor People’s Campaign will host a National Moral Monday rally at Union Station in Washington. This nonviolent moral direct action will be led by poor people, low-wage workers, progressive faith leaders and other inclusive justice activists. In celebration of the 56th anniversary of President Johnson signing the Voting Rights Act of 1965, speakers will enthusiastically make the case for ending the filibuster in order to pass the For The People Act and the John Lewis Voting Rights Advancement Act. This and other proposed federal legislation puts more political power in the hands of the people, increases election security, and protects the right to vote. Right now is the time to stand up for our future as a democracy!

The rally begins outside Union Station at 10:45 a.m. EDT, and will also be available via livestream. If you can attend Monday’s rally in person, sign up here. Event organizers can answer your questions and let you know if group travel options are available from your state.

FRIDAY, AUGUST 6:  USPS Board of Governors open session and public comments

Postmaster General Louis DeJoy caused massive disruption throughout the United States Postal Service during the 2020 election. Despite widespread frustration and anger about many of his actions in office, he is still Postmaster General because the USPS Board of Governors is the only entity with the authority to remove him from his position.

Louis DeJoy feels very secure in his job, for now

When President Joe Biden took office, Republicans held the majority of seats on the board, preventing DeJoy from being ousted. Since then, empty seats on the board have been filled by Biden to give Democrats the majority, but one Trump-appointed Democrat, Ron A. Bloom,  the board’s chair, supports DeJoy and is not likely to vote to fire him.

On Friday, August 6, the USPS Board of Governors will have an open session at the Postal Service Headquarters in Washington, and members of the public are allowed to observe.

Immediately after the open session there will be a one-hour public comment period—a rare opportunity to express dissatisfaction with DeJoy directly to the people who have the power to fire him. The meeting begins at 9:00 a.m. EDT at 475 L’Enfant Plaza, SW, on the 11th floor Benjamin Franklin Room. Use this form to request a three-minute speaking slot during the public comment period.

There is no easily accessible way to send comments to the USPS Board of Governors via email or fax, however, snail mail can be sent to Chairman Bloom or any other member of the Board using this address:

Mr. Ron A. Bloom
Office of the Board of Governors
United States Postal Service
475 L’Enfant Plaza, SW
Washington, DC 20260-1000

INDIVISIBLE is hosting many local actions during the August congressional recess

Indivisible is a grassroots political advocacy movement, with organizing presence in every single congressional district. No matter where you live, they can put you in touch with other activists in your area. During the August congressional recess, folks will be especially hard at work organizing local and regional demonstrations, town halls, and other visibility events all over the country. The long summer recess is a time when members of Congress are expected to spend time at their district offices, responding to constituent concerns. That makes August a perfect time to thank elected officials who are fighting the good fight, and confront elected officials who are on the wrong side of history.

Some events are already scheduled and can be found here. Right now there is doubt as to whether the recess will happen, or how long it will be, but once that has been decided, other Indivisible events will quickly follow and the list will fill up. In this critical year for the future of our country, members of Congress will be meeting with constituents and holding town halls, or they will be forced to explain to the press why they are not available and why they are hiding.

One voice can change a room. If there is no action planned near you, then YOU can plan an action. That could look like ou on a street corner with a handful of friends, or even all by yourself with one handmade sign; either might light a spark that encourages others in your community to step up and step out.

TOPSHOT - Swedish environment activist Greta Thunberg speaks at a climate protest outside the White House in Washington, DC on September 13, 2019. - Thunberg, 16, has spurred teenagers and students around the world to strike from school every Friday under the rallying cry "Fridays for future" to call on adults to act now to save the planet. (Photo by Nicholas Kamm / AFP)        (Photo credit should read NICHOLAS KAMM/AFP via Getty Images)
Remember, Greta Thunberg started out as one girl with a sign in 2018.

Remember how much coverage was given to the relatively small tea party events when they first started? Democrats can use the same tactics to draw attention to progressive issues such as voting rights, civil rights, climate change, and economic justice. Remember those big events in 2017 to save the Affordable Care Act? Members of Indivisible were the driving force behind a lot of those.

Indivisible has tools to help you plan a visibility event, spread the word, get local media coverage and make a real difference. If you are fired up and ready to go raise awareness for a specific justice issue, and no one else is drawing attention to it, maybe that is an opportunity for you to show—and learn—just what you can accomplish.

No matter what you do during Activism August, make sure to come to Daily Kos and write a story about it, so your experience can be applauded by this community and shared as an example of how we advance our political interests and goals.

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Our Connect! Unite! Act! team is here to provide support and guidance to new and existing volunteer leaders of each regional and state group, helping them with recruiting, organizing, and executing social and action events. We invite you to join in this effort to build our community. There are many ways to pitch in. If there isn’t a group to join near you, please start one.

What are you working on in your local area to move our progressive agenda along? Sound off in the comments, and inspire others!


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One positive outcome of this awful pandemic might just be more leverage for workers, thanks to Biden

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No offense to practitioners like Stevenson, but economics has long been burdened with the moniker “the dismal science.” The term derives from the 19th century Scottish thinker Thomas Carlyle, who applied the core economics concept of supply and demand in a polemic about slavery as well as horrific working conditions—including child labor—in British factories.

From an economics perspective, the relationship between supply and demand explains to a good degree why, in the example Carlyle focused on, British workers in his day were so badly abused. There was a far greater supply of available, unskilled workers than the existing demand for their labor, i.e., jobs, making them expendable and making it unnecessary to pay them well. That reality, combined with the lack of labor protections founded in law—as well as a lack of morality on the part of factory owners—led to the exploitation so memorably described in books like Oliver Twist and Hard Times by Charles Dickens. In the contemporary U.S., overall conditions for workers are better now than in Dickens’ time—but that’s an awfully low bar to clear.

Speaking of history, this is not the first time a brutal global pandemic has reset the relationship between employers and employees. To be sure, a disease that causes mass death is just about the farthest thing from an overall positive development for humanity. Nevertheless, sometimes a positive development does emerge out of a tragedy. We can examine the bubonic plague, more colloquially known as the “Black Death,” along such lines.

It was called the Black Plague because black boils emerged all over the bodies of its victims. In 1347, a ship carrying infected sailors arrived at a Sicilian port. Within the next five years alone, the plague had killed at least one out of every three Europeans—twenty million people. Worldwide, anywhere from 75 to 200 million people perished overall out of a global population of only 450 million, one of if not the worst pandemic in known history.

The plague also delivered the final death blow to the European medieval social and economic order, smashing the feudal and manorial system that had been in place in Western Europe for centuries after the fall of the Roman Empire. Under that system, serfs were bound to the land they worked from birth—as were their descendants—and lived completely under the control of the lord of the manor. They weren’t slaves who could be sold or separated from their families, but they had no freedom to speak of either.

Serfs believed—or more accurately were indoctrinated with—the notion that God had sanctioned this hierarchy, as well as their place at the bottom of it. The Roman Catholic Church was instrumental in inculcating this fiction. If you didn’t like your lot in life, well, hey, that’s the way The Man Upstairs wanted it. It’s scary enough to get angry about your job when Jeff Bezos is the one setting the rules—and I’d imagine it’s even more galling to watch him, after he’s screwed you over, profited handsomely from your labor, and thanked you for being so helpful, use said profits to punch his ticket into space (and earn frequent space traveler miles to boot). Now ponder how scary it would be for workers to argue about working conditions when they sincerely believe the guy who created the system can send them to hell for a period lasting, well, all of eternity. And that’s without even needing a rocket to get them there.

Two related shifts resulted from the plague. The first took place in the minds of the people. I teach European history, and here’s how I present it to my students: for centuries, lords, nobles, dukes, kings, popes, and bishops had all told serfs that society had to be organized a certain way—with them holding all the power—and if you question it, God will punish you. So the serfs obeyed. They did what God wanted them to. And they got hit with the bubonic plague anyway.

Remember also that during the plague the serfs and lower classes in general, unlike the wealthy, lacked the resources to isolate themselves by leaving an area where infections were spreading. So they bore the worst of the plague’s impact. I ask my students to imagine all this happening, and then ask themselves, if they were serfs, how they’d feel. I’ll ask you, dear reader, to do the same. Do you think you might say something along the lines of: “you know, that whole social structure ordained by God mumbo jumbo might just be a crock of fucking horseshit those rich dickheads conjured up to turn us into their bitches.” Or other similar sentiments.

Following the plague, there was significant social unrest. As in so many other times of crisis or tragedy, European Christians scapegoated Jews, falsely blaming them for spreading the disease—resembling the hate and violence Asian Americans face today, during the COVID-19 pandemic. On Valentine’s Day in 1349, upward of two thousand Jews were rounded up and burned to death in Strasbourg, with the remainder expelled from the city. There was extensive fighting in Mainz, where Jews organized a self-defense force and actually killed 200 Christian attackers. In the end, however, all 3,000 of the Jews in Mainz were massacred. Overall, more than 350 distinct mass killings took place, with 150 smaller and 60 larger Jewish communities across Europe destroyed.

Part of the unrest also related to the changing nature of socio-economic relations, in particular as relates to work, which represents the second of the two shifts I mentioned above:

As the plague wore on, however, depopulation greatly reduced the workforce and the serf’s labor suddenly became an important—and increasingly rare—asset. The lord of an estate could not feed himself, his family, or pay tithes to the king or the Church without the labor of his peasants and the loss of so many meant that survivors could now negotiate for pay and better treatment. The lives of the members of the lowest class vastly improved as they were able to afford better living conditions and clothing as well as luxury items.

Once the plague had passed, the improved lot of the serf was challenged by the upper class who were concerned that the lower classes were forgetting their place. Fashion changed dramatically as the elite demanded more extravagant clothing and accessories to distance themselves from the poor who could now afford to dress more finely than in their previous rags and blankets. Efforts of the wealthy to return the serf to his previous condition resulted in uprisings such as the peasant revolt in France in 1358 CE, the guild revolts of 1378 CE, the famous Peasants’ Revolt of London in 1381 CE. There was no turning back, however, and the efforts of the elite were futile. Class struggle would continue but the authority of the feudal system was broken.

This brings us back to supply and demand. The depopulation of Europe, disproportionately resulting from the deaths of serfs and workers, reduced the supply of labor at a time when demand for that labor was rising. That made labor more valuable, and gave workers new leverage. Plenty of nobles couldn’t find people to work their land—and they certainly wouldn’t stoop to working it themselves. Forget making them serfs, nobles were lucky in some cases to even get people to become employees (although one might also think of the end of slavery along these lines, the continued power of white supremacy prevented most freed Black Americans from improving their situation to a similar degree).

Look below at the correlation between the drop in Britain’s population and the boost in the purchasing power of workers’ earnings. As truly horrific as the bubonic plague was, most of those who toiled for a living and actually made it through with their health intact probably found themselves better off in economic terms.

The so-called Spanish flu that struck in 1918 produced a parallel result for U.S. workers, according to a research report produced by the St. Louis Federal Reserve Bank: “Cities and states having greater influenza mortalities experienced a greater increase in manufacturing wage growth over the period 1914 to 1919.”

Fast forward to our current pandemic. As COVID-19 began to spread rapidly around the world, and many of the largest economies shut down, a number of analyses offered prognostications regarding what past pandemics might teach us about the near future. Some predicted that the end result might be a rebalancing of the power differential between capital and labor that resembled in part what happened after the bubonic plague—although thankfully far fewer people have died this time, at least thus far. Others rejected the likelihood of a labor shortage. It’s worth noting that the first one I linked to in the previous sentence—which got it right—was written by an economist, while the author of the second one is a medieval archaeologist. Not always so dismal is economics.

The most recent U.S. jobs report, which covered June, provided the best evidence yet that workers are finally gaining at least some ability to dictate the terms of their employment. About 850,000 American jobs were created in June—the best month in just about a year. Wages climbed 0.3% over the month, and the total growth in wages year over year clocked in at 3.6%. Furthermore, those earning the lowest wages saw the largest gains.

ScreenShot2021-07-07at3.55.52PM.png

To be sure, these improvements began before June and are not solely a result of the pandemic—for example, demographic changes have meant lower growth in the labor force in the last few years. Either way, it is real:

“Companies are going to have to work harder to attract and retain talent,” said Karen Fichuk, who as chief executive of the giant staffing company Randstad North America closely tracks supply and demand for labor. “We think it’s a bit of a historic moment for the American labor force.”

The pandemic—and in particular the pro-worker policies pushed hard by Democrats in 2020 and, with even greater success, after Joe Biden and Kamala Harris took office in January along with slim majorities in the House and Senate—has had a major impact. President Biden, in remarks he made after the June jobs report was released, specifically highlighted the role of his American Rescue Plan—passed in March through the reconciliation process without a single Republican vote.

So, the American Rescue Plan is strengthening our financial position, and it grows our economy.  It’s continuing to grow our economy.  And the strength of our recovery is helping us flip the script.

Instead of workers competing with each other for jobs that are scarce, employers are competing with each other to attract workers. That kind of competition in the market doesn’t just give workers more ability to earn higher wages; it also gives them the power to demand to be treated with dignity and respect in the workplace.

More jobs, better wages—that’s a good combination.

Biden is right about flipping the script. Republicans, of course, hate it when workers have choices, and aren’t forced to beg for scraps. They bleated about how increased unemployment benefits were causing a labor shortage. Republican governors even cut those benefits off in their states months before the extra money—being paid by the federal government—was due to expire. Yet this jobs report, which covers the period before the cutoffs took effect in any of those states, showed boffo job growth, and wage increases for workers at the lower end of the wage scale are significant and widespread. Clearly, the enhanced benefits were not the problem. As John Jay College economist Michelle Holder put it, “We don’t have a shortage of people to work. What we don’t have are decent jobs.”

Separate from legislation, earlier this month the Biden White House issued an executive order that would, among other actions, encourage the Federal Trade Commission (FTC) to restrict or outright ban employers’ ability to impose noncompete clauses, another way to give employees more leverage. The order would also aim at stopping companies from colluding with one another to reduce compensation for workers in a given field, and would urge the FTC to limit “unnecessary” requirements that people working in particular professions get licenses or certifications, so that workers could more easily move from one state to another and continue to work in their chosen field.

Here’s White House press secretary Jen Psaki, speaking about her boss’s motivation for doing what he’s doing: “he believes that if someone offers you a better job, you should be able to take it. It makes sense.” Sure does. Neil Irwin of The New York Times characterized the executive order as “the most concerted effort in recent times to use the power of the federal government to tilt the playing field toward workers.” Trump had the opportunity to do something along the same lines as well, but he chose not to. It took a Democrat.

The law of supply and demand, as well as other factors that have weakened the power of unions and workers in general, has meant that capital has typically had the upper hand over labor, certainly since Ronald Reagan took office in 1980. For a long time, workers had few choices, and that was not something to be proud of—even if the twice impeached Florida retiree (h/t Speaker Pelosi) and his party like it that way.

As we know, it’s been standard operating procedure for Republicans long before Trump to divide workers by race—playing and preying on white anxiety—so that the multi-racial working- and middle classes don’t come together around their shared economic interests. Despite what Republicans claim, it’s still Democrats who are the real party of the working class.

Nevertheless—as, for example, workers at Frito-Lay can tell you (thankfully, their strike appears to have won real improvements in their working conditions)—there are still plenty of additional areas where Biden and congressional Democrats (Republicans sure won’t help) could do more to support and protect workers going forward. This is especially true for undocumented workers, who were disproportionately concentrated in jobs that made them vulnerable to COVID-19, such as meat processing plants among others.

Politics is about values. Progressives value work, in all its forms, and we believe in a capitalism where workers earn not only a living wage, but truly fair compensation, along with reasonable and humane working conditions, and a voice in the process by which the business that employs them makes decisions that affect their lives.

It shouldn’t have taken a devastating pandemic that killed 600,000 Americans—and four million human beings across the world—to give workers a measure of the leverage they need. That it did stands as a searing indictment of contemporary American capitalism. Changing our laws to provide workers more leverage on a permanent basis must be one of the very highest progressive priorities. Our values dictate no less.

Ian Reifowitz is the author of  The Tribalization of Politics: How Rush Limbaugh’s Race-Baiting Rhetoric on the Obama Presidency Paved the Way for Trump (Foreword by Markos Moulitsas)


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