Sandworm is the name given to a Russian military hacking group by a U. S. based cybersecurity firm. Sandworm has deployed sophisticated malware that has taken down and taken over computer systems, networks and attached infrastructure across the globe. Their viruses can lie in wait undetected until a targeted time. Some are tailored to take control of industrial control systems. These are the computer interfaces that turn digital instructions into physical ones for automated machines, which use programs to define their operation. The malware can replace those programs with code that can, for example, shut down a power plant and potentially destroy its equipment. It can facilitate remote operation by the hackers. Sandworm and its cohorts have brought about a new state of cyber warfare, demonstrating the capability to paralyze an entire nation with devastating effect.
In 2014 Russia seized Crimea from Ukraine and initiated a war in eastern Ukraine. In Ukraine’s May 2014 elections Russia went on the offensive targeting the computer network of the Central Election Commission. First they took out the computers. Once the commission put its system back together the Russians slipped in phony election results which the Ukrainians caught and scrubbed before presenting the actual results. Interestingly Russian state television at the same time announced their favorite had won, matching the phony results they had put in the network. Then the Russian hackers launched a denial of service attack flooding the network with messages. The group responsible was later identified to be linked to the Russian hacking group Fancy Bear that interfered with the U. S. 2016 election.
In October 2015 two severs and a number of PCs went down together at StarLightMedia, Ukraine’s largest TV broadcaster. Their computer security chief investigated finding Sandworm’s virus had gotten into the system six months earlier through an infected attachment. The virus had been biding its time. Other Ukrainian media companies were simultaneously attacked some suffering worse damage.
In December 2015 Russia targeted Ukraine’s infrastructure infecting computers controlling the electrical grid and causing blackouts in large areas. The rogue code allowed Sandworm to remotely use the power station’s computers to trip circuit breakers shutting down the power supply at exactly midnight two days before Christmas. The facility’s operators were locked out helplessly watching the cursor move about the screen. Then the hackers wiped clean the interface hardware that converted the computer instructions for the equipment so the operators wouldn’t be able to turn them back on. Finally Sandworm shut down the backup batteries that were providing power for the plant, literally leaving the operators in the dark.
While the Obama administration had reacted angrily to the North Korean attack on Sony Pictures in 2014, it seemed to publicly downplay the importance of the Ukraine attack and the threat it could pose to the U. S. Internally it was more worried. Fancy Bear would strike the Democrats in the 2016 election stealing and releasing emails and documents to help Trump. The name Fancy Bear was created by CrowdStrike, the security firm the Democrats hired to investigate the hacking. The company uses the name Bear for any malware from Russia, Panda for China, Tiger for India, etc. Cozy Bear was also involved. These two groups had been identified previously conducting attacks on the State Department, White House and defense contractors. Needless to say, Obama was very upset about the election hacking and the U. S. responded with sanctions.
In the late 1990s Russia had engaged in massive cyber espionage against the U. S. taking troves of military and industrial files and documents. In the next decade they would escalate to cyberwar taking out multiple components of civilian infrastructure. In 2007 Russian hackers executed a massive denial of service attack on Estonia’s government agencies effectively taking down the country’s internet which was used by 95% of the people for banking and by 90% to pay taxes. Even voting was online. The attack lasted two months crippling the country which had recently joined NATO. NATO did nothing in response. In 2008 in Georgia the Russians combined similar cyber-attacks with conventional military force attacking Georgia which had been considering joining NATO.
In 2007 in a demonstration at the Idaho National Laboratories 30 lines of code were used to destroy a large generator connected to the grid. Deployed over the internet the code reprogrammed the machine interface to reverse a command which connected the generator to the grid when it was at the correct speed. Instead the code disconnected it sending it spinning wildly then connected it again which forced it to abruptly slow down to the correct speed at which point the commands were repeated. The generator soon flew apart.
The first country to use malware to physically destroy another country’s equipment was the U. S. Called Stuxnet, the code was developed by the NSA under the Bush and Obama administrations with Israeli help. It was deployed against Iran starting in 2009. The code specifically targeted centrifuges that were being used to enrich uranium for nuclear weapons. It was launched through USB drives. It would command a centrifuge to spin out of control and self-destruct. Sneakily it fed back false information to the operator that everything was fine. It started sporadically taking out one here and one there. In the end it took out thousands, but probably only set back the Iranian program a year at the most two. The target was military, a significant difference from the Russian attacks. State hackers over the world took notice once the malware was discovered and defined. Just like the first atom bomb, everyone knew there was a new weapon to use.
In December 2016, the Russians attacked Ukraine again deleting the files on the computers of the Ukraine’s pension administration, treasury, seaport authority, defense, finance, and infrastructure ministries. They took down the railway’s booking system in heavy use just before Christmas. On December 17 they hit the main power transmission station just outside of Kiev. One by one circuits went down finally leaving the station and a large area of the capital without power. This time the staff was able to restore service more quickly but they stood warned. Two security firms got copies of the malware and dissected it writing public reports in June 2017 that detailed its capabilities. They noted that the virus could be deployed against any country and any automated infrastructure with small modifications. The lead American researcher presented his findings to the National Security Council and representatives of other relevant agencies. The report made it to Dan Coats, U. S. Director of National Intelligence, who passed brief parts to Trump. The response back was that they didn’t want to discuss it. After the election Trump had no interest in anything involving Russian hacking. The virus had not been set up to physically destroy equipment, but could be in the future.
In 2016 a Russian group calling itself the Shadow Brokers penetrated the U. S. NSA stealing the potent Eternal Blue and a mother lode of efficient hacking tools. An NSA employee had loaded the sensitive materials on his home computer which used Russian Kaspersky antivirus software. He received six years in prison. After taunting the NSA for months Shadow Brokers released all the malware to the public in 2017. Soon hackers unleashed these new weapons. Eternal Blue was used by North Korean hackers to spread its ransomware WannaCry. It caused havoc in the U. K. National Health System as appointment schedules were lost and emergency rooms closed. Telefonica in Spain, companies in Germany, France, India and China were attacked, even Sberbank in Russia. Paying the perpetrators did no good; the code had no way to decrypt the files it had encrypted.
In 2012 a French IT Manager reported a Windows vulnerability to Microsoft, which didn’t see it as a serious threat. Frustrated he wrote Mimikatz to show it could be exploited. Soon Mimikatz was in the hands of hackers. A sophisticated group like Sandworm took advantage of all the known tools, old ones like Black Energy and Kill Disk, and newer ones like Eternal Blue, the NSA tool kit, and Mimikatz. Sandworm would enhance them, customize them and tie them together into a virulent malware.
On June 17, 2017, Sandworm struck Ukraine again. This time through tax software that was used by nearly everyone in Ukraine to file taxes. Starting in the spring Sandworm had placed code on the tax company’s update server that sent out patches and updates to its many thousands of customers. Included was Sandworm’s latest creation called Notpetya. Notpetya not only infected the target computers but the computers and servers on their network. Notpetya presented itself as ransomware, but there was no way to get the data back. The intention was clearly just data destruction. Ukraine’s second largest bank had 90% of its computers taken down in seconds. Ukrainian power companies, railways, airports quickly succumbed. Some government agencies avoided the virus by shutting down all their networks and systems immediately upon learning about outages. But even though they saved their data from being destroyed, they were still out of business until the virus was eradicated from all the infected systems or a preventive patch could be provided. The postal service which also handled government pension payments was down with 70% of its 23,000 computers infected, the others shut down in time to prevent infection. Hospitals computers were infected and their data lost. Test results, appointment schedules, all gone. Credit card payment systems no longer worked neither did most ATMs. Many people couldn’t buy gas, metro tickets or food.
Notpetya also struck many international companies with offices in Ukraine. The virus leapt from their Ukraine office computers to their offices around the world. Within hours major companies across the globe were losing their computers and networks; for example Merck, Mondelez, Maersk, Reckitt Benckiser, TNT Express, and even companies in Russia which were probably unintended. The virus was so effective at spreading from one network to another that it may well have exceeded Sandworm’s expectations. Maersk, the mammoth worldwide shipping company, is a good example. It had an office in a Ukraine Black Sea port with one computer in the finance department that had the tax accounting software on it. The computer was infected by the tax company’s server. From there the virus jumped through Maersk’s worldwide network. Maersk’s facility in Elizabeth, New Jersey, five miles from Manhattan, encompasses a square mile with tens of thousands of modular containers stacked high. As many as 3,000 trucks a day enter the facility to deliver or pick up. On the morning of June 27, 2017 all that stopped. Trucks were backed up for miles. The facility closed for the day with no indication of when it would reopen. Truckers and cargo owners were frantic to find alternative shipping or temporary storage. Maersk’s computers were infected and down. They lost all track of shipments coming and going. The same scenario played out at Maersk facilities in Los Angeles, Rotterdam, Algeciras, Mumbai and many others. It would take a week for near normal function to return and that recovery was tenuous. A lone uninfected computer in Ghana contained information vital to the recovery which was hand carried back to the main data center in the U. K. The 18,000 container vessels that served Maersk harbors could then resume deliveries. Even companies not directly hit suffered collateral damage. Many hospitals from the U. S. to India were affected because the provider of their transcription service that puts doctor’s recordings into the computer system was down. The disruption lasted weeks, directly affecting lives. In money terms the total cost of the Notpetya attack was estimated at $10 billion.
Greenberg makes a convincing case that Sandworm is a unit within the GRU, Russian military intelligence. It may have combined resources from several units, some possibly in the FSB, successor to the KGB. Ukraine immediately identified Russia as responsible for notpetya as did many private security services. It would take a while for other governments to publicly acknowledge it though NATO did immediately identify the culprit as a state actor without naming Russia. NATO probably did not want to acknowledge what was an act of war. Interestingly when the giant conglomerate Mondelez filed a claim for damages with its cyber-attack damage insurer, Zurich Insurance Group, the claim was rejected as an act of war. That case is still not settled. In January 2018 the Washington Post reported that the CIA had concluded that Russia was responsible. Finally in February 2018, the White House issued a statement, “In June 2017, The Russian military launched the most destructive and costly cyber-attack in history…It was part of the Kremlin’s effort to destabilize Ukraine…” The U. K. had earlier named Russia and other countries followed. The U. S. imposed financial sanctions on some individual Russians. Unfazed, the GRU that same month disrupted the Olympic Games in South Korea taking out supporting computer systems, perhaps Russia’s response to the anti-doping investigation that punished its athletes. In July 2018 the U.S. Department of Justice indicted 12 GRU hackers for the 2016 election interference. Special Counsel Robert Mueller filed the indictments.
In November 2017, Brad Smith, President of Microsoft, gave a speech at the UN building in Geneva. Some snippets “We’re seeing nations attack civilians even in times of peace.” “We live in a world where the infrastructure of our lives is ultimately vulnerable to the weakest link.” “It’s clear where the world is going. We’re entering a world where every thermostat, every electrical heater, every air conditioner, every power plant, every medical device, every hospital, every traffic light, every automobile will be connected to the internet. Think about what it will mean for the world when those devices are the subject of attack.”