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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: Ilaine who wrote (6013)7/18/2001 10:55:59 PM
From: TobagoJack  Read Replies (1) of 74559
 
I do not have on-line subscription, only airport news stand buy as I go ... the article talked about a particular incident (amongst other incidents) whereby a massive cyber attack was launched out of Dubei against US military computers containing Iraq plans right before some US attack on Iraq, and it turned out to have been instigated by two teenagers out of California who had routed their attack through servers in Dubei. The attacks against financial institutions concern me more, especially the ones I do business with. Generally, I would think being in HK, Hawaii, the Philippines and Beijing precludes me from becoming a casualty of wars far away, but cyber war is different.

The direct cost in the US of the "I love You" virus out of the Philippines was between $3-15 billion. That is like having a fair sized town carpet bombed.

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SUMMARY
The United States may be an uncontested military superpower, but it remains defenseless against a new mode of attack: information warfare. As the military, the private sector, and Washington grow increasingly dependent on computers and information networks, they also grow more vulnerable to cyber-attack. Cyberspace is becoming the new front line of warfare, and private citizens are the new prime target. U.S. policymakers and technology entrepreneurs must wake up to this threat and build a wall of defense -- now.
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Virtual Defense
by James Adams
From Foreign Affairs, May/June 2001

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500-word preview

THE WEAKNESS OF A SUPERPOWER
Just as World War I introduced new weaponry and modern combat to the twentieth century, the information age is now revolutionizing warfare for the twenty-first. Around the world, information technology increasingly pervades weapons systems, defense infrastructures, and national economies. As a result, cyberspace has become a new international battlefield. Whereas military victories used to be won through physical confrontations of weapons and soldiers, the information warfare being waged today involves computer sabotage by hackers acting on behalf of private interests or governments. The recent escalation of tension between Israel and the Palestinians, for example, has had a prominent virtual dimension. From October 2000 to January 2001, attacks by both sides took down more than 250 Web sites, and the aggressions spread well beyond the boundaries of the Middle East to the computer networks of foreign companies and groups seen as partisan to the conflict.

A decade after the end of the Cold War, the U.S. military stands as an uncontested superpower in both conventional and nuclear force. Ironically, its overwhelming military superiority and its leading edge in information technology have also made the United States the country most vulnerable to cyber-attack. Other nations know that they have fallen behind in military muscle, so they have begun to look to other methods for bolstering their war-fighting and defense capacities -- namely, "asymmetrical warfare," which the Pentagon characterizes as "countering an adversary's strengths by focusing on its weaknesses."

Furthermore, the U.S. military is radically changing. The "revolution in military affairs" seeks to apply new technology, particularly digital information technology, to operational and strategic concepts. With plans ranging from computer-based weapons research programs to software that encrypts classified military data, from computer-guided "smart" bombs to a space-based missile defense, America's military forces are coming to depend more and more on computers and information networks. These two factors -- the dominance of U.S. conventional forces and the military's already extensive and growing use of information technology -- make cyber-attack an increasingly attractive and effective weapon to use against the United States.

But U.S. defense plans and policymakers' concept of national security have not caught up to the new threats of computer warfare. Indeed, recent warnings indicate that the United States remains highly vulnerable. To address this challenge, Washington urgently needs to modernize its thinking and transcend its strategies of deterrence and national security, which remain fixed in the Cold War, pre-Internet world.

MOONLIGHT MAYHEM

In March 1998, the Department of Defense detected the most persistent and serious computer attack against the United States to date. In a still ongoing operation that American investigators have code-named Moonlight Maze, a group of hackers has used sophisticated tools to break into hundreds of computer networks at NASA, the Pentagon, and other government agencies, as well as private universities and research laboratories. These cyber-intruders have stolen thousands of files containing technical research, contracts, encryption techniques, and unclassified but essential data relating to the Pentagon's war-planning systems.

Since Moonlight Maze was first discovered, the U.S. intelligence community has been engaged in . . .
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