THE WASHINGTON TIMES April 16, 1998 Bill Gertz Computer hackers could disable military; System compromised in secret exercise Senior Pentagon leaders were stunned by a military exercise showing how easy it is for hackers to cripple U.S. military and civilian computer networks, according to new details of the secret exercise. Using software obtained easily from hacker sites on the Internet, a group of National Security Agency officials could have shut down the U.S. electric-power grid within days and rendered impotent the command-and-control elements of the U.S. Pacific Command, said officials familiar with the war game, known as Eligible Receiver. "The attack was actually run in a two-week period and the results were frightening," said a defense official involved in the game. "This attack, run by a set of people using standard Internet techniques, would have basically shut down the command-and-control capability in the Pacific theater for some considerable period of time." Pentagon spokesman Kenneth Bacon said, "Eligible Receiver was an important and revealing exercise that taught us that we must be better organized to deal with potential attacks against our computer systems and information infrastructure." The secret exercise began last June after months of preparation by the NSA computer specialists who, without warning, targeted computers used by U.S. military forces in the Pacific and in the United States. The game was simple: Conduct information warfare attacks, or "infowar," on the Pacific Command and ultimately force the United States to soften its policies toward the crumbling communist regime in Pyongyang. The "hackers" posed as paid surrogates for North Korea. The NSA "Red Team" of make-believe hackers showed how easy it is for foreign nations to wreak electronic havoc using computers, modems and software technology widely available on the darker regions of the Internet: network-scanning software, intrusion tools and password-breaking "log-in scripts." According to U.S. officials who took part in the exercise, within days the team of 50 to 75 NSA officials had inflicted crippling damage. They broke into computer networks and gained access to the systems that control the electrical power grid for the entire country. If they had wanted to, the hackers could have disabled the grid, leaving the United States in the dark. Groups of NSA hackers based in Hawaii and other parts of the United States floated effortlessly through global cyberspace, breaking into unclassified military computer networks in Hawaii, the headquarters of the U.S. Pacific Command, as well as in Washington, Chicago, St. Louis and parts of Colorado. "The attacks were not actually run against the infrastructure components because we don't want to do things like shut down the power grid," said a defense official involved in the exercise. "But the referees were shown the attacks and shown the structure of the power-grid control, and they agreed, yeah, this attack would have shut down the power grid." Knocking out the electrical power throughout the United States was just a sideline for the NSA cyberwarriors. Their main target was the U.S. Pacific Command, which is in charge of the 100,000 troops that would be called on to deal with wars in Korea or China. "The most telling thing for the Department of Defense, when all was said and done, is that basically for a two-week period the command-and-control capability in the Pacific theater would have been denied by the 'infowar' attacks, and that was the period of the exercise," the official said. The attackers also foiled virtually all efforts to trace them. FBI agents joined the Pentagon in trying to find the hackers, but for the most part they failed. Only one of the several NSA groups, a unit based in the United States, was uncovered. The rest operated without being located or identified. The attackers breached the Pentagon's unclassified global computer network using Internet service providers and dial-in connections that allowed them to hop around the world. "It's a very, very difficult security environment when you go through different hosts and different countries and then pop up on the doorstep of Keesler Air Force Base [in Mississippi], and then go from there into Cincpac," the official said, using the acronym for the Commander in Chief, Pacific. The targets of the network attacks also made it easy. "They just were not security-aware," said the official. A second official found that many military computers used the word "password" for their confidential access word.
[TRANSCRIPT] DoD News Briefing Thursday, April 16, 1998 - 1:30 p.m. (EDT) Mr. Kenneth H. Bacon, ASD (PA) ---------------------------------------------------------------- [Snip...] Q: Ken, could you give us a bit of a readout on this war game, ELIGIBLE RECEIVER and what steps the Pentagon is taking to shore up computer security? A: Sure. First is, ELIGIBLE RECEIVER is a game that was played by the Joint Staff last June. It tested our ability to deal with cyber attacks. It was directed only against our unclassified systems, not against classified systems, and it found that we have a lot of work to do to provide better security. We're not alone in this regard. Most businesses, many private institutions, many individuals have a lot of work to do in improving their ability to protect their computers and computer systems. But because of ELIGIBLE RECEIVER and the subsequent attack by hackers against unclassified computer networks earlier this year, John Hamre, the deputy secretary of defense, has launched a number of initiatives to improve computer security in the Pentagon. The first is, of course, something that we achieved by holding ELIGIBLE RECEIVER, and in fact it was the point of ELIGIBLE RECEIVER which was to improve everybody's awareness of the threats posed to computer systems today. And ELIGIBLE RECEIVER I think succeeded beyond its planner's wildest dreams in elevating the awareness of threats to our computer systems. Since then we've had a series of meetings with the Justice Department, with the Vice President's office and other agencies in the government to address, on a broad scale basis, issues of computer security. In this building in particular, we've appointed a Chief Information Officer, Art Money, who's going to become the Assistant Secretary of Defense for command, control and communications. He's been nominated to do that. He is in charge of being the main focal point for efforts to improve computer security across the military. This is a daunting prospect. We have in the Department of Defense 2.1 million computers, 100,000 local area networks, and more than 100 long distance networks. Of course some of these are highly secure, and those are the ones that receive the most attention, but we've come to realize that we have to pay a lot of attention to just standard computer networks that transmit e-mail and other information such as payroll information, etc. One of the things that Dr. Hamre did earlier this year was issue a memorandum directing that a number of actions be taken. One was, for instance, that every computer network in the Department of Defense has to have a named security officer, sort of a central point of contact to go to to deal with problems for that particular network. There are a whole series of other efforts to develop better ways for detecting attacks. We're putting a lot of effort into better ways of detecting attacks against our computer systems. In the fiscal years 1999 to 2002, the Department of Defense will spend $3.6 billion to address computer security issues, so it's something we are devoting a lot of resources and a lot of time to, but we have a ways to go. I think we are making progress, and we will make progress at an accelerating rate as we grapple with the dimensions of this problem. Q: Have there been any investigations on the apparent attempts to hack into the Special Operations Forces computer? A: I'm not up to speed on that. We'll get somebody to look into that. I assume if we know of attempts to break into our computer systems we investigate them. That's one of the things we've talked about with the Justice Department. One of the things we've looked at is ways to set up a better counter-intelligence system for detecting attacks and for going after the people who are making the attacks. In addition, we're trying to do a much better job of staying in touch with our teenage children and others to learn the latest hacker techniques so we can be one step ahead of them rather than several steps behind. But as all of you know, that's easier said than done. But there are a variety of efforts across a wide spectrum of issues that we're taking here to improve computer security. Obviously this is a moving train. We've got two problems. We've got to make the switches as we continue to pump increasing amounts of important information over the computer systems. That's the first thing. And we have to keep up with technology that's changing very rapidly. Q: Do you agree with the assessment that this could have drastically impacted the electrical grid in the country, number one? Have they had mal-intent? And number two, why did they not attempt to go into the classified, or to penetrate the classified systems? A: There are tests done on a fairly regular basis against a number of the classified systems to make sure that they are in fact secure. By virtue of the fact that they are secure they receive much more attention. I guess I'd rather not make apocalyptic statements about the electrical grid, but we did learn that computer hackers could have a dramatic impact on the nation's infrastructure, including the electrical power grid. That, of course, is why there's a whole commission set up to deal with that, the Commission on Critical Infrastructure. One of the things that Deputy Secretary Hamre did back early this year when we were subject to attack by hackers, the unclassified systems, was talk to the President about this because the President and the Vice President are both very concerned about computer security and infrastructure stability generally.