04 January 2024

SURPRISE! Major Cyber Attack Paralyzes Kyivstar - Ukraine's Largest Telecom Operator

The destruction at Kyivstar began at around 5:00 a.m. local time while Ukrainian President Volodymyr Zelenskiy was in Washington, pressing the West to continue supplying aid.
The attack wiped "almost everything", including thousands of virtual servers and PCs, he said, describing it as probably the first example of a destructive cyberattack that "completely destroyed the core of a telecoms operator."

Ukraine’s cyber spy chief says attack on Kyivstar should serve as a ‘BIG WARNING’ to The West


  • Illia Vitiuk is cyber chief in Ukraine's SBU spy agency
  • Kyivstar hack destroyed telecoms giant's "core", he says
  • Russian military spy unit Sandworm seen behind hack
  • SBU caught Sandworm in earlier telecoms breach - Vitiuk
LONDON, Jan 4 (Reuters) - Russian hackers were inside Ukrainian telecoms giant Kyivstar's system from at least May last year in a cyberattack that should serve as a "big warning" to the West, Ukraine's cyber spy chief told Reuters.
The hack, one of the most dramatic since Russia's full-scale invasion nearly two years ago, knocked out services provided by Ukraine's biggest telecoms operator for some 24 million users for days from Dec. 12.

In an interview, Illia Vitiuk, head of the Security Service of Ukraine's (SBU) cybersecurity department, disclosed exclusive details about the hack, which he said caused "disastrous" destruction and aimed to land a psychological blow and gather intelligence.

  • "This attack is a big message, a big warning, not only to Ukraine, but for the whole Western world to understand that no one is actually untouchable," he said. 
  • He noted Kyivstar was a wealthy, private company that invested a lot in cybersecurity.
  • The attack wiped "almost everything", including thousands of virtual servers and PCs, he said, describing it as probably the first example of a destructive cyberattack that "completely destroyed the core of a telecoms operator."

During its investigation, the SBU found the hackers probably attempted to penetrate Kyivstar in March or earlier, he said in a Zoom interview on Dec. 27.
  • "For now, we can say securely, that they were in the system at least since May 2023," he said. 
  • "I cannot say right now, since what time they had ... full access: probably at least since November."
The SBU assessed the hackers would have been able to steal personal information, understand the locations of phones, intercept SMS-messages and perhaps steal Telegram accounts with the level of access they gained, he said.

A Kyivstar spokesperson said the company was working closely with the SBU to investigate the attack and would take all necessary steps to eliminate future risks, adding: 

  • "No facts of leakage of personal and subscriber data have been revealed."

Vitiuk said the SBU helped Kyivstar restore its systems within days and to repel new cyber attacks.
  • "After the major break there were a number of new attempts aimed at dealing more damage to the operator," he said.
Kyivstar is the biggest of Ukraine's three main telecoms operators and there are some 1.1 million Ukrainians who live in small towns and villages where there are no other providers, Vitiuk said.
  • People rushed to buy other SIM cards because of the attack, creating large queues. ATMs using Kyivstar SIM cards for the internet ceased to work and the air-raid siren - used during missile and drone attacks - did not function properly in some regions, he said.

He said the attack had no big impact on Ukraine's military, which did not rely on telecoms operators and made use of what he described as "different algorithms and protocols".

"Speaking about drone detection, speaking about missile detection, luckily, no, this situation didn't affect us strongly," he said.

Woman walks past a Kyivstar store in Kyiv

A woman walks past a store of Ukraine's telecommunications company Kyivstar, amid Russia's attack on Ukraine, in Kyiv, Ukraine December 12, 2023. REUTERS/Alina Smutko/File Photo

RUSSIAN SANDWORM

Investigating the attack is harder because of the wiping of Kyivstar's infrastructure.
Vitiuk said he was "pretty sure" it was carried out by Sandworm, a Russian military intelligence cyberwarfare unit that has been linked to cyberattacks in Ukraine and elsewhere.
  • A year ago, Sandworm penetrated a Ukrainian telecoms operator, but was detected by Kyiv because the SBU had itself been inside Russian systems, Vitiuk said, declining to identify the company. 
  • The earlier hack has not been previously reported.
Russia's defense ministry did not respond to a written request for comment on Vitiuk's remarks.
Vitiuk said the pattern of behavior suggested telecoms operators could remain a target of Russian hackers. The SBU thwarted over 4,500 major cyberattacks on Ukrainian governmental bodies and critical infrastructure last year, he said.
A group called Solntsepyok, believed by the SBU to be affiliated with Sandworm, said it was responsible for the attack.

Vitiuk said SBU investigators were still working to establish how Kyivstar was penetrated or what type of trojan horse malware could have been used to break in, adding that it could have been phishing, someone helping on the inside or something else.
If it was an inside job, the insider who helped the hackers did not have a high level of clearance in the company, as the hackers made use of malware used to steal hashes of passwords, he said.
Samples of that malware have been recovered and are being analyzed, he added.
Kyivstar, Ukraine's Largest Mobile Operator, Is Hit by a Cyberattack - The  New York Times
Kyivstar's CEO, Oleksandr Komarov, said on Dec. 20 that all the company's services had been fully restored throughout the country. Vitiuk praised the SBU's incident response effort to safely restore the systems.
  • The attack on Kyivstar may have been made easier because of similarities between it and Russian mobile operator Beeline, which was built with similar infrastructure, Vitiuk said.
  • The sheer size of Kyivstar's infrastructure would have been easier to navigate with expert guidance, he added.
The destruction at Kyivstar began at around 5:00 a.m. local time while Ukrainian President Volodymyr Zelenskiy was in Washington, pressing the West to continue supplying aid.
Vitiuk said the attack was not accompanied by a major missile and drone strike at a time when people were having communication difficulties, limiting its impact while also relinquishing a powerful intelligence-gathering tool.
Why the hackers chose Dec. 12 was unclear, he said, adding:
"Maybe some colonel wanted to become a general."

Editing by Mike Collett-White and Timothy Heritage

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4 hours ago — Ukraine's cyber spy chief says attack on Kyivstar should serve as a 'big warning' to the west.
54 minutes ago — "Washington says USA and Israel had no role in terrorist attack in Kerman, Iran. ... attacks combined with drone strikes blanketed Ukraine on ...
22 minutes ago — The Security Service of Ukraine (SBU) assisted Kyivstar in restoring its systems and repelling subsequent cyber attacks. The telecoms ...
3 hours ago — Ukraine's cyber spy chief says attack on Kyivstar should serve as a 'big warning' to the west.
3 hours ago — SBU cybersecurity chief: Hackers had access to Kyivstar months before December attack ... "This attack is a big message, a big warning, not only ...

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Ukraine and Russia Turn To Sabotage Plots As The War Drags On
PLEASE NOTE: This report relies on two sources: 
  1. Peter Schroeder, a former CIA analyst and former principal deputy national intelligence Officer for Russia and Eurasia at the National Intelligence Council in the Office of the Director of National Intelligence (ODNI), now an adjunct senior fellow with the Transatlantic Security Program at the Center for a New American Security.
  2. Ronald Marks, a former CIA officer and special assistant to the assistant director of Central Intelligence for military support.

Ukraine and Russia Turn to Sabotage Plots as the War Drags On

‘WHO CAN YOU TRUST?’
Ukraine and Russia Turn To Sabotage Plots As The War Drags On
PLOTTING

With little ground gained in recent weeks, Russia and Ukraine are increasingly relying behind-the-scenes on guerrilla warfare and sabotage operations.

Nearly two years into the conflict, the front lines of Russia’s war in Ukraine have grown relatively deadlocked, with no end in sight  —  forcing both Russian and Ukrainian forces to get creative.
With little ground gained in recent weeks, Russia and Ukraine are increasingly relying behind the scenes on guerrilla warfare and sabotage operations to put a dent in enemy morale and disrupt rival military plans.
In recent weeks, Ukraine attacked a key Russian rail tunnel in the Severomuysky mountains in an apparent attempt to disrupt supply lines from China and North Korea. 
second train exploded just days later in the Siberian region of Buryatia. 
Ukrainian Special Operations Forces blew up another train last month in Melitopol that was carrying ammunition and fuel for Russian forces.
The military intelligence agency of Ukraine suffered an attack in the last several weeks as well. 
  • Marianna Budanova, the wife of the chief military intelligence officer in Ukraine, Kyrylo Budanov, was poisoned, the agency said. Several other agency employees were afflicted as well.
Conventional military operations continue—Russia levied hours of drone and missile strikes in Ukraine at the dawn of the new year, marring the holiday with death and destruction, while Ukraine in recent days has been hitting back in Belgorod inside Russia. 
  • But in 2024, Russian and Ukrainian operators alike will likely increasingly rely on sabotage plots to destabilize one another as the war remains in near stalemate, veteran intelligence officers said.
These kinds of tactics are particularly pertinent at this phase of the war, according to Ronald Marks, a former CIA officer and special assistant to the assistant director of Central Intelligence for military support.

“If you’re stuck, as you are right now, with no lines moving, what you’re really looking to do is inflict as much pain as you can on both sides,” Marks told The Daily Beast.

“Basically you’re trying to undermine their will and their willingness to continue to engage in this strategy.”

Employing these tactics may achieve some strategic aims like killing off certain enemy figures or disrupting supply lines crucial to the war effort, as in the case of the Severomuysky Tunnel. But across the board, their aim is likely more about shaking morale, said Marks. . .

“The main thing about guerrilla warfare is… it’s about insecurity. It’s about keeping the troops nervous,” Marks said. “It’s about not knowing who’s supporting who behind the lines. Who can you trust?”

From the Ukrainian perspective, the sabotage operations can be aimed at sullying Vladimir Putin’s war effort in the public eye, according to Peter Schroeder, a former CIA analyst and former principal deputy national intelligence Officer for Russia and Eurasia at the National Intelligence Council in the Office of the Director of National Intelligence (ODNI).

They are “seeking to bring the war home to the Russian population as a means to undermine popular support for Putin’s war,” said Schroeder, now an adjunct senior fellow with the Transatlantic Security Program at the Center for a New American Security. “The Kremlin has deliberately tried to promote an image of normalcy inside Russia. These Ukrainian sabotage operations seek to pierce that facade.”

Russia and Ukraine have long relied on sabotage and guerrilla warfare tactics in order to gain the upper hand, even before Russia invaded Ukraine in 2022.

“The sabotage part of the war has been going on for a long time,” Schroeder said. “Both sides have shown an ability to operate clandestinely in the other country. They’ve had years to refine their operational tradecraft.”

Earlier in the war, too, sabotage shook up the playing field. The attack on the Nord Stream II pipeline in September 2022 remains as yet unsolved. Investigators from Germany, Sweden, and Denmark are on the case, while Ukraine has denied responsibility for the attack. Dutch military intelligence warned the United States about a Ukrainian plot months beforehand, according to Dutch NOS public broadcaster, German broadcaster ARD, and national weekly Die Zeit.

Ukraine attacked the Kerch bridge, a key supply route between Russia and Crimea, in 2022 as well. Attacks on the bridge have continued since, and the Ukrainian government has grown increasingly vocal in claiming responsibility for the operations.

“We have destroyed the myth of Russian invincibility. The country is a fake. The bridge is doomed. Plenty of surprises lie ahead and not just the Crimean bridge,” Vasyl Maliuk, the SBU chief, said in November of a more recent attack.

But as the war progresses, subterfuge takes on new strategic importance. For Ukraine, these operations may be aimed at pinning down Russian forces in ways that prevent them from focusing on their territorial goals.

Russia has struggled with its war effort since it began, with manpower problems along the way, including an unpopular mobilization effort and efforts from citizens to flee Russia. Throughout the war, senior Russian officers and troops have been killed at a stunning pace: Since the invasion of Ukraine, Russia has lost 315,000 men, or approximately 90 percent of the personnel it had when the war began, according to a U.S. intelligence assessment.

Rather than risk calling up additional citizens through an unpopular mobilization, Putin has resorted to building manpower by pulling from prisons, forcing migrants to join the military, and increasing the size of the military to bump up numbers without causing a domestic political stir.

Ukrainian sabotage efforts may seek to further enflame the underlying trouble in Russia’s manpower department by bogging down existing Russian forces with sabotage ops, said Schroeder.

“While still operating in Ukraine, Russian forces have to spend a lot of time trying to root out Ukrainian partisans and potential saboteurs in occupied Ukraine and Russian border regions,” Schroeder said.

“If you’re stuck, as you are right now, with no lines moving, what you’re really looking to do is inflict as much pain as you can on both sides.”

Russian special services have had to resort to assigning more personnel to hunt down saboteurs, according to a release from Ukraine’s National Resistance Center last month.

The operations also serve a PR purpose for Kyiv. 
  • As doubts have emerged about the West’s willingness to continue funding Ukraine aid, the sabotage operations signal that support for a Ukrainian victory abounds.
  • “If you’re Ukraine… it again is a morale booster at home, saying, ‘Look, we can touch these guys anytime we want to at this point,’” Marks said. 
  • “It’s a sales point internally to the people of Ukraine, and it’s a sales point to the West. 
  • A lot of that sabotage right now is going to have to deal with Western influences.”

Moscow’s sabotage operations seem to be more aimed at disruption, according to Schroeder.

“For strategic effect, Moscow seems to be more inclined to clandestine sabotage operations to disrupt the flow of weapons from NATO countries to Ukraine,” Schroeder said.
  • Poland last year charged a spy ring of 16 agents allegedly working for Russia to derail and sabotage trains transporting military gear for Ukraine.

All around, the guerrilla warfare is likely intended to shake the enemy so much that they come to
a negotiation table or so that they are willing to reach some form of an armistice agreement, said Marks.
“What you’re doing with that kind of guerrilla warfare or that kind of sabotage is basically you’re trying to undermine their will and their willingness to continue to engage in this strategy,” Marks said. 
“You’re not going to win the war that way. But what you are going to do is continue to undermine the morale, undermine the support that people would have for it.”
That “ultimately gives you a shot at coming to some kind of settlement,” he added.
The prospects for Russia look poor, according to recently revealed intelligence from the U.K. 
  • According to a report from the U.K. Ministry of Defense, Russia’s forces are in a degraded state. 
  • Over the course of 2023, the number of casualties rose to 300 per day. 
  • The increase “reflects the degradation of the Russian readiness force and their movement to a low quality, high quantity mass army,” the Ministry of Defense said.
If they continue on as is for another year, Russia will have lost half a million personnel.
Russian invasion of Ukraine - Wikipedia

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