Feral Jundi

Tuesday, August 2, 2011

Letter Of Marque: ASF 2011–Gen. Michael Hayden Talks About LoM And ‘Digital Blackwater’

Now this was a pleasant surprise. I am always on the lookout for any serious or interesting conversations about the Letter of Marque and Reprisal, and low and behold I stumbled on a good one at the Aspen Security Forum. General Michael Hayden, with his extensive intelligence background and experience, actually brought up the concept of the LoM (@ min. 30:04) when talking about private security in the cyber space realm. The ‘Digital Blackwater’ comment came up before the mention of the LoM. Pretty cool stuff, and it is great to see such important and highly influential folks have a conversation about the concept.

The other topic that came up that really grabbed my attention is the patent legislation that is coming up that is referred to as the ‘first to file’ law or the Leahy-Smith America Invents Act. Meaning, companies that ‘first’ file the patent, win the rights to it, as opposed to companies or individuals who actually thought it up and file for that patent. A law like this would make it very lucrative for digital pirates to steal valuable information and file it first–legally. Scary stuff, and this could ramp up the cyber piracy game big time. The Google Cloud security solution is what you can rely on to get help with securing your data.

The other statistic I was floored by was that the US businesses loses about a trillion dollars a year to cyber piracy and all of the money that companies have to spend on security. That is a stunning figure, and it kind of puts into perspective what is really being lost, and especially during such tough economic times. Something must be done to stop that, and you can see why concepts like digital PSC’s and LoM come up.  It’s like these criminals and attackers are just walking into Fort Knox and taking whatever gold they want. The vulnerable OT networks is what one should make sure to protect from cyber attacks.

Finally they ended the conversation with cloud computing, which will probably be pretty popular for companies to get into. Reduced cost and increased security do to economy of scale (everyone is sharing everyone’s stuff, to include security measures) Although I tend to think that cloud computing will be attacked and exploited, just like anything else. Interesting stuff, and this is a great LoM resource for future discussions. –Matt

 

Tuesday, July 12, 2011

Maritime Security: Pirates Are Using NVG’s And Hacking Shipping Company Email Accounts

I had to put this one out there, because this is just one more indication as to what kind of game the pirates are playing. With the amount of money they are making from ransoms, a fantastic investment for them would be to determine what boats ‘do not have’ armed security, just so they can focus on those boats. From hacking accounts, to stealing or purchasing information, to watching the departing vessels and identifying if they have security–they are doing it all.

They are probably scouring the internet in other places as well, trying to obtain any information that would be helpful. That means online forums, Facebook, Twitter, blogs, open source news articles–all of the things that everyone in the world has access too.

What is troubling as well, is there are no laws or regulations on OPSEC for maritime security.  So if a guy wants to post photos or talk about their latest contract out on the high seas, they could do it without any pressure against the practice. It is on that individual, that company that hires them, and that shipping company that uses that guard force to keep this in check. I guess the thing that guys have to remember is that you have to assume that anything you post on your Facebook or forum, will be read by the public to include criminals. Criminal entities will find a way to read your stuff, despite your privacy settings, if they have determined that your information has value.

Likewise, if you are the owner of a security company or shipping company, I would suggest taking as many precautions as possible to protect your email accounts from hackers.  Perhaps look at using more secure email services like Hushmail or similar encrypted mail systems. Anything to make it more difficult for these guys to find out what you are up to. An IT security specialist could be a good investment for getting you started on a secure system of communications and protocols.

The other thing I wanted to bring up, that this article kind of delved into, is the latest pirate tactical developments. It is my understanding that not only are pirates using cutting torches so they can break into safe rooms, but are also using night vision goggles or NVG’s to attack at night.(thanks to a reader for the tip) With that said, I would highly suggest to companies that have teams on boats to equip your folks with NVG’s and ensure your ‘night time strategy and tactics’ are sound. Pirates are attacking at night because it is a tactical advantage. You must also assume that they have thought about the other tools of night time boarding, and this should give the naval warfare experts out there plenty to chew on as to how best to defeat such a thing.

So what else could the pirates do to gain advantage?  How about using UAV’s?  A store bought RC plane with a camera or night vision camera, could easily be deployed by a pirate crew to probe your vessel’s defenses. They could also use UAV’s to look for potential targets out there.  Or an investor might come along that has access to the bigger more capable UAV’s, and provide that for the operation. Anything the pirates think they need to be successful will be looked at in terms of cost benefit analysis.

Another thing they could do is actually go into the water with a re-breather, and at night, much like a commando unit would do, all to close the distance and gain surprise. They could also contract the services of criminal groups that might specialize in this kind of diving. Anything for them to gain relative superiority in their assault.

I would also think that pirates have been studying military tactics and strategy for operations on the high seas. Anything that a modern naval force would do in terms of boarding ships, a pirate crew will try to copy.(mimicry strategy) Pirates will watch youtube videos, or watch in real time as naval forces do their thing out there. They are watching and learning, and driven by the thrill of the hunt and the massive reward for their efforts.

Another development is upgrades to current weaponry. This article from Maritime Security Review discussed the possibility that pirates are now using RPG 29’s. Here is the quote:

One maritime security sources said that this may point to the acquisition of the RPG 29 model, rather than the standard RPG 7.
RPG 29s were developed in Russia in the 1980s, and pack a punch sufficient to penetrate the frontal armour of most modern tanks. Secondhand models are now in circulation in the Middle East. Security professionals have feared for some time that the Somalis would sooner or later get their hands on them.
According to experts, when the more powerful RPGs are deployed, “A vessel’s hull might be easily breached, with further damage, injury or even death incurred to the crew within.”

The other thing to look at is the money and support mechanism for today’s piracy. Investors know a good deal when they see it, and especially jihadist investors. If groups like Al Shabab are demanding a 20 percent cut in the profits, then now piracy becomes a cash cow for them and their operations. In some parts of the world, piracy might be the only real criminal/fund raising game in town, and the rise in piracy attacks only confirms the popularity and profitability of this type of offense industry.

Piracy also has a lot of cross over benefits as well. You can use these guys to smuggle drugs, weapons, terrorists,  human traffic, and all for profit. You can use these guys to capture large boats to use as weapons against ports, blocking waterways, or attacking other vessels, or as bases for attacks. So piracy is an excellent game for terrorists and criminals to get into, and they are mutually beneficial to each other. In order to stay ahead of these guys in terms of strategy and tactics, all of us must continue to study and ‘know our enemy’.  Never underestimate them and always assume that if you can think it up, they have probably came up with the same idea. –Matt

Pirate Games
July 12, 2011

The Somali pirate gangs have adapted to the growing fleet of warships and maritime patrol aircraft arrayed against them. One of the new tricks is getting into the databases of shipping companies and their Internet based communications. This information is bought from criminal operatives in London and the Persian Gulf, and provides precise information where the most lucrative and vulnerable ships will be.
Much of the money obtained from ransoms is used to buy goods and services from Persian Gulf merchants and other “specialists.” This includes assistance in negotiating with the shipping and insurance companies, as well as other services. This includes intelligence. The Persian Gulf is rife with corruption, and this makes it easier to buy needed information. That’s harder to do in London (the center of the maritime insurance industry, and where much information on where the most valuable ships are). British police have detected some efforts to obtain information for pirates, and believe these efforts are becoming more intense.

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Monday, March 7, 2011

Industry Talk: Ares Management Will Acquire Global Defense Technology And Systems

     It paid nearly $27 million for the Fort Meade-based Zytel and almost $53 million for Signature Government Solutions in Herndon.

     Those purchases “kind of tapped them out, so they really needed some dry powder to continue on the acquisition campaign . . . to maintain their growth and maintain their competitiveness,” Kipp said.

     Hillen said Ares’ backing could potentially accelerate GTEC’s plans to buy more companies as it seeks to grow organically and through acquisitions.

     The company is focusing on high-end technology companies that work in areas like cybersecurity and intelligence, surveillance and reconnaissance. 

     Boy, if you owned any GTEC stock you probably experienced a little bump as a result from this acquisition news. I also included the stock screener for GTEC so you can see for yourself what Ares Management is seeing in Global.

     This company is doing well, and the infusion of private-equity will help them to continue to do well.  Who knows what companies will be in Global’s sights for future purchase, but if you look at their past purchases dealing with cyber security, we probably can deduct that we will see more of the same in the future. Cyber security is huge business, and companies are all jockeying for position in this evolving market.

    Of course the reason I put this up on the blog is because GTEC is also related to Global Strategies Group.(From website: Our former wholly-owned North American subsidiary, Global Defense Technology & Systems, Inc. GTEC, recently completed an initial public offering. GLOBAL continues to be a significant shareholder of GTEC.) Although I don’t think this news will really impact you guys out there too much, unless you owned stock in GTEC. Thanks to a reader for giving me the heads up. –Matt

Private equity firm will acquire GTEC of McLean

By Marjorie CenserMonday, March 7, 2011

McLean-based Global Defense Technology & Systems, a growing contractor primarily focused on intelligence systems and services, announced last week it will be acquired by an affiliate of private-equity firm Ares Management.

The company is the latest to be picked up by private equity, which has played an increasingly large role in the defense industry as it adjusts to anticipated reduced budgets and new Pentagon guidelines on conflicts of interest.

The buy “highlights the capital market renaissance that’s occurred over the last 12 months,” said Bob Kipps, managing director of the McLean-based investment firm KippsDeSanto.

The definitive agreement reached by GTEC, as the company is known, and Ares, based the deal on a share price of $24.25, a nearly 51 percent increase over the company’s $16.08 close the day before the agreement was announced. The total deal value is approximately $315 million, including the assumption of debt and prior to expenses, GTEC said.

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