YCLOAK

North Korea’s senior leadership has been exploiting loopholes in international sanctions to obtain the U.S. technology that Pyongyang uses to conduct “destructive cyber operations,” according to a global cyberthreat intelligence company.

Recorded Future, based in Massachusetts, found that while export bans and restrictions are somewhat effective in keeping North Korea from acquiring technology for its nuclear weapons program, sanctions fail when it comes to regulating computer products from entering into North Korea.

“Because of the globalized nature of technology production and distribution, the traditional export control is not really working for [computer] technology,” said Priscilla Moriuchi, one of the authors of “North Korea Relies on U.S. Technology for Internet Operations.” “It may work quite well for ballistic missile parts or fissile material, but the system is not designed to limit technology transfer, and it’s not optimized for that.”

​Upcoming summit

In the report, Moriuchi and her co-author, Fred Wolens, call for a “globally robust unified effort to impose comprehensive sanctions” on North Korea, warning that without this Pyongyang “will be able to continue its cyberwarfare operations unabated with the aid of Western technology.”

The report was released days before North Korean leader Kim Jung Un and U.S. President Donald Trump are scheduled to meet in Singapore for a summit focused on ending the North’s nuclear weapons program in exchange for economic incentives and security guarantees.

But some consider North Korea’s cyberthreat capabilities as damaging as the threat of its nuclear weapons, Morgan Wright, a former a senior adviser in the U.S. State Department Antiterrorism Assistance Program, wrote in The Hill.

Even as advance teams prepared for the June 12 summit, North Korean cyberattacks continued, Moriuchi told Cyberscoop. On May 28, it reported the Department of Homeland Security and the FBI released a joint alert about Hidden Cobra, which is associated with North Korea’s hacking activities.

FireEye, a Silicon Valley cybersecurity company, detected cyberattacks by Lazarus, the North Korean hacking effort responsible for stealing millions of dollars from the Bangladesh Central Bank in 2016. Lazarus is also believed responsible for the 2014 Sony Picture’s hack and last year’s WannaCry ransomware attack.

​Defining ‘luxury goods’

How did U.S. technology reach North Korea? Part of the answer lies in “international inconsistencies in the definition of the term ‘luxury goods,’” according to the Recorded Future report. The U.S. “effort to restrict technology exports at the national and international level” has not reaped results because of “varied definitions by nations and [their] inconsistent implementations,” said Moriuchi, a former East Asia analyst for the National Security Agency.

While the United Nations did not include electronics in Resolution 2321, which covered exports to North Korea, when it was issued in 2016, each member nation was allowed to interpret luxury goods. The U.S. has defined luxury goods to include laptop computers, digital music players, large flat-screen televisions and electronic entertainment software. China, in particular, does not “honor the luxury goods listed by other countries when it exports to” North Korea, according to the report.

US exports OK

Another factor is that for seven years in the period spanning 2002 to 2017, “the United States allowed the exportation of ‘computer and electronic products’ to North Korea,” according to the report. The total for those seven years was more than $430,000 of legal exports, and according to Recorded Future, “at its peak in 2014, the U.S. exported $215,862 worth of computers and electronic products to North Korea.”

The Recorded Future report, citing the U.S. Department of Commerce (DOC), said that category includes “computers, computer peripherals (including items like printers, monitors and storage devices), communications equipment (such as wired and wireless telephones), and similar components for these products.”

Much of that equipment remains in use, according to Recorded Future, and North Korea’s ruling elites, including party, military, and intelligence leaders and their families, have long been known to use products manufactured by U.S. companies such as Apple, Microsoft and IBM to access the internet.

A third element in how the U.S. tech went astray is what the report called North Korea’s “sophisticated sanctions evasion operation, which uses intermediaries and spoofs identities online.”

As an example, the study points to North Korea’s shell company Glocom with which Pyongyang “used a network of Asian-based front companies to buy computer components from electronic resellers, and the payment was even cleared through a U.S. bank account.” The United Nations found that Glocom was tied to Pan Systems Pyongyang, whose director, Ryang Su Nyo, reports to Liaison Office 519 in the North Korean intelligence agency’s Reconnaissance General Bureau.

​Just like us

North Korea’s elites surfed and browsed just like users outside North Korea until recently when the Recorded Future researchers found “a stark change” in the elite’s usage patterns as they “migrated almost completely” from Facebook, Google and Instagram “to their Chinese equivalents — Alibaba, Tencent and Baidu,” and over the course of a few months “dramatically increased” their use of internet obfuscation services, such as virtual private networks (VPN), virtual private servers (VPS), transport layer security (TLS) and the Onion Router (Tor).

While tracking the change in activity from December 2017 to April 2018, researchers found “the overwhelming presence of American hardware and software on North Korea networks and in daily use by senior North Korean leaders.”

While U.S. exporters are responsible for understanding and adhering to export regulations, the study indicates even the implementation of robust compliance procedures were insufficient in preventing banned U.S. computer products from reaching North Korea.

U.S. export enforcement rests with the Office of Foreign Asset Control, the Office of Export Enforcement and Homeland Security Investigations. The U.S. is one of the only countries that enforces its export laws outside of its national boundaries, placing federal agents in foreign countries to work with local authorities.

Widespread international sanctions were imposed beginning in 2006, when North Korea conducted its first nuclear weapons test. In response, the U.N. passed two resolutions (Resolution 1695 and 1718) banning a broad range of exports to North Korea by any U.N. member states. The U.N. subsequently expanded those sanctions through a number of resolutions that prohibit and restrict exporting items ranging from missile material to oil to North Korea.

The case of ZTE

The Recorded Future report mentions Chinese manufacturer ZTE (Zhongxing Telecommunications Equipment) as a case where the implementation of export regulation failed, pointing out that the U.S. had the chance to enforce its export laws when the company was under Export Administration Regulation (EAR), a dense set of laws regulating exports.

ZTE was initially placed on the so-called Entities List for violating U.S. sanctions for selling products containing U.S. goods to Iran and North Korea in March 2016. For two years, the company and the U.S. government attempted to reach an agreement over penalties and how to verify that ZTE had stopped violating U.S. sanctions.

The Department of Commerce (DOC) ended the negotiations and imposed a denial order that banned U.S. companies from selling to ZTE for seven years.

In May, the DOC lifted the denial order, which would have put ZTE out of business, and allowed ZTE to purchase components from U.S. companies. The move came after threats of a trade war and Trump’s intervention.

Moriuchi said if the U.S. had let ZTE fail, it would have sent “a huge message to the rest of the world that there is no [company] too big to fail” and that “the U.S. government takes export control very seriously.”

In the end, “an opposite message ended up being sent with the administration’s deal with China, and that there are companies too big to fail especially if that company … has significant interest with the United States,” she said, adding the case demonstrated that “you can circumvent U.S. export control as a company and in the end, survive.”

The U.S. enforces its export laws through the DOC and regulates them through EAR, which not only restricts commercial goods and technologies from reaching hostile countries but also regulates the re-export of U.S. goods and technologies from one foreign country to another.

Until 2008, U.S. sanctions prohibiting exports to North Korea were implemented through the Trading with the Enemy Act, through which the U.S. government banned any exports to designated countries including North Korea.

Subsequently, the Obama administration issued the North Korea Sanctions Regulations and a number of Executive Orders (13551, 13570, 13687, and 13722) to further prohibit various measures, including exports of “goods, services or technology to North Korea.”

Additionally, numerous U.S. sanctions were imposed against North Korea under Trump’s “maximum pressure” campaign, especially in 2017 during Pyongyang’s nuclear weapons and ballistic missiles tests, which also saw the U.N. issue new sanctions.

VOA’s Christy Lee contributed to this report.
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Growing up on Mount Boutmezguida in southwest Morocco on the edge of the Sahara desert, Khadija Ghouate never imagined that the fog enveloping the nearby peaks would change her life.

For hours every day and often before sunrise, Ghouate and other women from nearby villages would walk 5 km (3 miles) to fetch water from open wells, with girls pulled out of school to help and at risk of violence on the lonely treks.

But with groundwater levels dropping due to overuse, drought and climate change, the challenge to get enough water daily was becoming harder, and almost half of people in the local area sold up and quit rural life after generations for the city.

As the future of the traditional Berber region by Mount Boutmezguida floundered, a mathematician whose family came from the area had a eureka moment gleaned from living overseas – using fog to make water.

Now Ghouate’s village is connected to the world’s largest functioning fog collection project, alleviating the need to collect water that fell mainly on women, and with state-of-the-art equipment setting an example for other projects globally.

“You always had to go to the wells, always be there, mornings, evenings,” said Ghouate, a mother-of-three, as she prepared lunch for her family, showing off the tap in her home.

“But now water has arrived in our house. I like fog a lot.

The project, running since 2015 after nine years of surveys and tests, was founded by the Moroccan non-government organization Dar Si Hmad, which works to promote and preserve local culture, history, and heritage.

It was the brainchild of mathematician and businessman Aissa Derhem whose parents were originally from Mount Boutmezguida where the slopes are covered in mist on average 130 days a year.

Derhem first came across fog collection when he learned of one of the world’s first projects – in Chile’s Atacama Desert – while he living in Canada in the 1980s studying for his PhD.

But it was not until visiting his parents’ village years later that he realized the mountainous location, situated at the edge of the Sahara and about 35 km (22 miles) from the Atlantic Ocean, was perfect for fog.

Ideal Location

Mist accumulates in coastal areas where a cold sea current, an anticyclone and a land obstacle, such as a mountain range, combine.

“When the sea water evaporates, the anticyclone … stops it from becoming rain, and when it hits the mountain, that’s where it can be gathered,” Derhem told the Thomson Reuters Foundation, looking out from the top of Mount Boutmezguida besides a small building used as a fog observatory and tool deposit.

“If we look at the planet, we see this happening in all tropical regions … In Chile and Peru in Latin America. The Kalahari desert in Africa. In Western Australia. Around the Thar desert in India and in California,” he listed as examples.

Developed in South America in the 1980s, fog collection projects have since spread globally to countries including Guatemala, Ghana, Eritrea, Nepal and the United States.

In Morocco, Dar Si Hmad has built a system of nets stretching about 870 square metres – about 4.5 tennis courts.

These nets are hung between two poles and when wind pushes the fog through the mesh, water droplets are trapped, condense and fall into a container at the bottom of the unit with pipes connecting the water to reservoirs.

Derhem hopes the success of the Mount Boutmezguida scheme can help other areas in West Africa and in North Africa – where the United Nation’s Food and Agriculture Organization (FAO) says fresh water resources are among the world’s lowest.

Studies show climate change impacting water patterns globally and Derhem said in Morocco levels have dropped to about 500 cubic meters a person a year from about 1,500 cubic meters a person in the 1960s on calculations based on government figures.

Challenges Too

The principles behind fog collection are simple, and throughout nature examples exist of creatures capturing moisture from the air in the most arid conditions, ranging from beetles in the Namib Desert to lizards in the Australian outback.

But creating a water collection project on a large scale comes with challenges, as the research and development, as well as the infrastructure and technology involved in expanding and developing fog collection projects, can be costly.

The project at Mount Boutmezguida, however, has been a trailblazer for other projects due to its equipment, according to its founders.

The original nets used were insufficiently resistant to the high winds and tore but a partnership with the German non-profit Water Foundation allowed Dar Si Hmad to develop a stronger net.

The CloudFisher was described by the WaterFoundation as the first maintance-free fog collector that can withstand wind speeds of up 120 kph with flexible troughs following the movement of the net in the wind.

Now collected water is filtered and combined with underground water before being distributed to villages on the grid with homes paying for water through a pre-paid system.

The initial pilot project served five villages. At present, the 870 square metres of nets installed reach about 140 families – 14 villages – while a second set of nets is being built.

“Fog is like aeroplanes at the start. At the beginning they were only little toys but, with some effort, things have changed … but it needs investment,” said Derhem.

“Along the coast, there is three times as much fog as there is available on Mount Boutmezguida. The government spends millions for water desalination processes. This is something that is worth exploring.”

For with dry wells comes anxiety and risk but also the unraveling of traditional livelihoods and communities.

Mohamed Zabour, president of the local municipality, said more than 60 percent of the inhabitants of the region live without running water in their homes.

Between 2004 and 2014, 2,000 of the 5,000 local residents moved to cities.

“Our region is rich but it needs infrastructure. And water is one of the priorities,” said Zabour.

“If we don’t find a solution in the next 10 years, it’s going to be a catastrophe … It’s going to be like a desert. Empty.”

For Ghouate, the fog scheme has improved village life.

“When we were kids, we didn’t even know what it meant to need water  … Now there is less rain and if I still had to go to the wells, I wouldn’t find much water now,” she said. “Everything is about water, everything. I don’t have to worry about it anymore.”
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Facebook said a software bug led some users to post publicly by default regardless of their previous settings. The bug affected as many as 14 million users over several days in May.

 

The problem, which Facebook said it has fixed, is the latest privacy scandal for the world’s largest social media company.

 

It said the bug automatically suggested that users make new posts public, even if they had previously restricted posts to “friends only” or another private setting. If users did not notice the new default suggestion, they unwittingly sent their post to a broader audience than they had intended.

 

Erin Egan, Facebook’s chief privacy officer, said the bug did not affect past posts. Facebook is notifying users who were affected and posted publicly during the time the bug was active, advising them to review their posts.

 

The news follows recent furor over Facebook’s sharing of user data with device makers, including China’s Huawei. The company is also still recovering from the Cambridge Analytica scandal, in which a Trump-affiliated data-mining firm got access to the personal data of as many as 87 million Facebook users.

 

Jonathan Mayer, a professor of computer science and public affairs at Princeton University, said on Twitter that this latest privacy gaffe “looks like a viable Federal Trade Commission/state attorney general deception case.” That’s because the company had promised that the setting users set in their most recent privacy preferences would be maintained for future posts. In this case, this did not happen for several days.

 

Facebook’s 2011 consent decree with the FTC calls for the company to get “express consent” from users before sharing their information beyond what they established in their privacy settings. Even if the bug was an accident on Facebook’s part, Mayer said in an email that the FTC can bring enforcement action for privacy mistakes.

 

Facebook, which has 2.2 billion users, says the bug was active from May 18 until May 27. While the company says it stopped the error on May 22, it was not able to change all the posts back to their original privacy parameters until later.

 

The mistake happened when the company built a new way for people to share “featured items” on their profiles. These items, which include posts and photo albums, are automatically public. In the process of creating this feature, Facebook said it accidentally made the suggested audience for all new posts public.

 

When people post to Facebook, the service suggests a default distribution for their posts based on past privacy settings. If someone made all posts “friends only” in the past, it will set their next post to “friends only” as well. People can still manually change the privacy level of the posts — anywhere from “public” to “only me” — and this was the case while the bug was active as well.
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High costs of extracting greenhouse gases from thin air could tumble with new technologies that can help to combat climate change, scientists said on Thursday.

Carbon Engineering, a Canadian-based clean energy company, outlined the design of a large industrial plant that it said could capture carbon dioxide from the atmosphere at a cost of between $94 and $232 a ton.

That is well below past estimates of about $600 a ton by the American Physical Society, said David Keith, a Harvard University physics professor and the founder of Carbon Engineering who led the research.

“I hope to show that this as a viable energy industrial technology, not something that is a magic bullet … but something that is completely doable,” he told Reuters of the peer-reviewed study published in the journal Joule.

Carbon Engineering, which has about 40 employees and produces about a ton of carbon dioxide a day from an experimental plant. The technology makes synthetic fuels using only air, water and renewable power.

Keith said an industrial-scale plant could make fuel at a dollar a liter. That would be competitive in California, where low carbon fuel standards to cut pollution from cars and trucks mean high prices.

He said some investors were interested. An industrial plant, costing hundreds of millions of dollars, could capture a million tons of carbon dioxide a year, equivalent to emissions by 250,000 cars.

Other experts welcomed the study as a step to clear up huge uncertainties about the costs of “direct air capture.”

U.N. reports indicate that governments may have to deploy such novel technologies this century to remove carbon from nature and bury it to limit global warming under the 2015 Paris climate agreement.

“Direct air capture is a politically promising route for carbon dioxide removal,” said Oliver Geden, of the German Institute for International and Security Affairs.

And an air capture plant could be built almost anywhere. It would not threaten farmland, unlike options of planting vast forests which soak up carbon dioxide, he said.

Climeworks, a Swiss company and Carbon Engineering’s main rival, also told Reuters it was hoping to cut its production price to $100 a ton in the next 5-10 years, from about $600 now. It sells carbon dioxide to greenhouses as an airborne fertilizer to grow tomatoes or cucumbers.

Jan Wurzbacher, a founder of Climeworks, said more and more governments are likely to jack up penalties on carbon emissions to limit floods, storms and rising seas in coming years, making the technology more viable.

The World Bank says Sweden has the highest carbon taxes, currently 1,150 Swedish crowns ($133) a ton.
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Google won’t do artificial intelligence work for weapons, the company said Thursday.  

The company will not work on “technologies that cause or are likely to cause overall harm,” wrote Sundar Pichai, Google’s CEO, in a blog post.

 

Google has come under fire in recent months for its contract with the U.S. Department of Defense to use AI for sifting through drone footage. AI is a field of study whereby a computer or technology is able to do things typically associated with human behavior, such as make decisions, plan and learn.

 

Google and other tech firms have been bringing the advances in AI to fields such as medicine, natural disaster planning, energy, transportation and manufacturing.

But these advances have also led to ethical concerns about the kinds of decisions being made without human input.

“How AI is developed and used will have a significant impact on society for many years to come,” Pichai wrote. “As a leader in AI, we feel a special responsibility to get this right.”

 

Sifting through drone footage

In recent months, more than 4,000 Google employees signed a petition calling for the cancellation of the company’s contract with the Department of Defense as part of the DoD’s Project Maven initiative. They joined other critics in raising alarms that the project could lead to the use of autonomous weapons.

 

Last week, a Google executive reportedly told employees that the company would not seek to renew its Project Maven contract with the military.  

Kirk Hanson, the executive director of the Markkula Center for Applied Ethics at Santa Clara University, which counts Google as a financial supporter, said Google’s contract highlights a larger debate about AI and military applications.

“Until we have trust that those systems will not make mistakes, we’re going to have a lot of doubts about the use of artificial intelligence for autonomous weapons,” Hanson said.

 

Google will continue some work for the military, Pichai said.

 

“We want to be clear that while we are not developing AI for use in weapons, we will continue our work with governments and the military in many other areas,” he said. “These include cybersecurity, training, military recruitment, veterans’ healthcare, and search and rescue.”
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Google will not allow its artificial intelligence software to be used in weapons or unreasonable surveillance efforts under new standards for its business decisions in the nascent field, the Alphabet unit said Thursday.

The restriction could help Google management defuse months of protest by thousands of employees against the company’s work with the U.S. military to identify objects in drone video.

Google instead will seek government contracts in areas such as cybersecurity, military recruitment and search and rescue, Chief Executive Sundar Pichai said in a blog post Thursday.

“We want to be clear that while we are not developing AI for use in weapons, we will continue our work with governments and the military in many other areas,” he said.

Breakthroughs in the cost and performance of advanced computers have carried AI from research labs into industries such as defense and health in the last couple of years. Google and its big technology rivals have become leading sellers of AI tools, which enable computers to review large datasets to make predictions and identify patterns and anomalies faster than humans could.

But the potential of AI systems to pinpoint drone strikes better than military specialists or identify dissidents from mass collection of online communications has sparked concerns among academic ethicists and Google employees.

A Google official, requesting anonymity to discuss the sensitive issue, said the company would not have joined the drone project last year had the principles already been in place. The work comes too close to weaponry, even though the focus is on non-offensive tasks, the official said Thursday.

Google plans to honor its commitment to the project through next March, a person familiar with the matter said last week.

More than 4,600 employees petitioned Google to cancel the deal sooner, with at least 13 employees resigning in recent weeks in an expression of concern.

A nine-employee committee drafted the AI principles, according to an internal email seen by Reuters.

The Google official described the principles as a template that any software developer could put into immediate use. Though Microsoft and others released AI guidelines earlier, the AI community has followed Google’s efforts closely because of the internal pushback against the drone deal.

Google’s principles

Google’s principles say it will not pursue AI applications intended to cause physical injury, that tie into surveillance “violating internationally accepted norms of human rights,” or that present greater “material risk of harm” than countervailing benefits.

“The clear statement that they won’t facilitate violence or totalitarian surveillance is meaningful,” University of Washington technology law professor Ryan Calo tweeted Thursday.

Google also called on employees and customers developing AI “to avoid unjust impacts on people,” particularly around race, gender, sexual orientation, and political or religious belief.

The company recommended that developers avoid launching AI programs likely to cause significant damage if attacked by hackers because existing security mechanisms are unreliable.

Pichai said Google reserved the right to block applications that violated its principles. The Google official acknowledged that enforcement would be difficult because the company cannot track each use of its tools, some of which can be downloaded free of charge and used privately.

Google’s decision to restrict military work has inspired criticism from members of Congress. Representative Pete King, a New York Republican, tweeted Thursday that Google not seeking to extend the drone deal “is a defeat for U.S. national security.”
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As the internet continues to revolutionize communications, the next world-changing technology may already be here. Blockchain, a way of recording data and automatically storing it on computers around the world, has the potential to change everything from collecting crime scene evidence to creating new digital currencies. VOA’s Jill Craig visited a blockchain hackathon in Memphis, Tennessee, to learn more.
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