NIPC Daily Report                31 May 2002

The NIPC Watch and Warning Unit compiles this report to inform recipients of
issues impacting the integrity and capability of the nation's critical
infrastructures.

Debate over exposing chemical risks. The chemical industry in recent months
has successfully lobbied the government to limit access to previously public
data about chemical accidents, arguing that it would give terrorists a
blueprint to launch an attack.  The US chemical industry also has won
growing support in law-enforcement circles to fight the terrorist threat
with voluntary security improvements - and secrecy. Environmentalists,
however, are determined to keep exposing the information, arguing that
chemical companies are engaged in far riskier behavior by not adopting safer
manufacturing methods.  Although environmentalists concede that what they're
doing could make it easier for terrorists to pick targets, they contend that
an industrial accident could be as devastating as a planned assault.  The
question of which side might be taking greater chances with American lives
remains unanswered. (The Wall Street Journal, 30 May)

WWU Comment: Although this article refers to the chemical industry, it
underscores the issue facing many industries trying to balance issues of the
public's 'right to know' about hazardous conditions and properly securing
sensitive data. Several concerns converge when considering the disclosure of
information regarding security, materials, processes, and physical
locations. Costs and other constraints associated with security and process
upgrades can make them infeasible or at least improbable in the short-term.

FBI warns of shoulder-fired missile threat.  Although it has had no specific
warnings, the FBI is alerting law enforcement agencies to be on the lookout
for any signs of terrorist plans to use shoulder-fired missiles against US
targets, especially commercial airliners. "The FBI possesses no information
indicating that al Qaeda is planning to use 'Stinger' missiles or any type
of MANPAD [portable anti-aircraft] weapons system against commercial
aircraft in the United States," the warning said. "However, given al Qaeda's
demonstrated objective to target the US airline industry, its access to US
and Russian-made MANPAD systems, and recent apparent targeting of US-led
military forces in Saudi Arabia, law enforcement agencies in the United
States should remain alert to potential use of MANPADs against US aircraft."
(CNN, 30 May)

Klez infection persists. The "Klez" worm and its variants, including Klez.E
and Klez.H, continue to spread at a dizzying rate, according to anti-virus
experts. The Klez rampage has gotten so serious, recent media reports dubbed
it the No. 1 virus of all time. Klez.A was first spotted Oct. 25, 2001, but
didn't do much damage.  Klez.E, which first appeared Jan. 17, was the first
Klez variant that produced significant activity. The latest variant, known
as Klez.H, was first seen April 17, 2002.  Symantec has received 130,000
different submissions of the Klez worm since Klez.E's mid-January debut.
This month alone, Symantec has received 70,000 total Klez submissions.  By
comparison, the worm known as W95.Hybris is the second most submitted as of
May 2002, with a mere 3,600. Representatives from Norton Anti-virus stated
that not every user of the company's Anti-Virus protection chooses to send
samples for analysis, "so the total number of infections is likely
potentially much greater". (Newsbytes, 29 May)

Security researchers warn about worm of the future.  In a paper, How to Own
the Internet in Your Spare Time, Stuart Stanford of Silicon Defense, Vern
Paxson of ICSI Center for Internet Research, and Nicholas Weaver of
University of California Berkeley, argue that internet worms, used as attack
tools, will continue to pose a significant threat to systems and
infrastructures.  Based largely on analysis of the spread the Code Red and
Nimda worms, they suggest that in the future, worms that are better
engineered and more advanced will be able to spread in tens of seconds
rather than hours, and be modified on the fly to circumvent anti-virus
efforts.  The paper also discusses the threat of a surreptitious worm that
would move more slowly, but be much harder to detect and could arguably
subvert upwards of 10,000,000 Internet hosts.  The authors suggest that by
using worms to gain control of millions of hosts on the Internet, the
attacker could inflict several types of damage.  First, the attacker could
launch a diffuse distributed denial of service attack that could bring down
e-commerce sites, news outlets, or command and control infrastructures.
Second, the attacker could potentially access and exploit sensitive
information on any of the millions of infected systems, such as passwords or
archived e-mail.  Finally, if the attacker can control the information on
infected systems, he could corrupt or disrupt the information in order to
sow confusion. (The Register 27, May)

Russian firm to sell crude oil to US. Yukos, Russia's No. 2 oil producer
will send its first tankers to the US this summer as part of a Russian
effort to offer US consumers an alternative to Persian Gulf oil.  Russia
currently supplies a tiny percentage of oil to the US; however, US officials
have expressed interest in increasing Russia's share of the market. Oil is
Russia's chief export and oil export taxes are a big part of the national
budget.  (Associated Press, 30 May)

Congressional panel issues information security report to Congress .  The
Joint Economic Committee on 29 May issued a compilation of essays titled
"Security in the Information Age" heavily focusing on cyber security and
critical infrastructure protection.  The objective, according to Chairman
James Saxon, is to increase awareness of vulnerabilities, and to develop
viable strategies to detect, deter, and counter both physical and
cyber-based threats to the American citizens, and the Nation's critical
infrastructures.  The report is designed to foster creative thinking
regarding national security. (Govexec.com, 28 May)




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