By Whitney Webb
With many focusing on the Cyber Polygon exercise, less attention has been paid to the World Economic Forum’s real ambitions in cybersecurity – to create a global organization aimed at gutting even the possibility of anonymity online. With the governments of the US, UK and Israel on board, along with some of the world’s most powerful corporations, it is important to pay attention to their endgame, not just the simulations.
Amid a series of warnings and simulations in the past year regarding a massive cyber attack that could soon bring down the global financial system, the “information sharing group” of the largest banks and private financial organizations in the United States warned earlier this year that banks “will encounter growing danger” from “converging” nation-state and criminal hackers over the course of 2021 and in the years that follow.
The organization, called the Financial Services Information Sharing and Analysis Center (FS-ISAC), made the claim in its 2021 “Navigating Cyber” report, which assesses the events of 2020 and provides a forecast for the current year. That forecast, which casts a devastating cyber attack on the financial system through third parties as practically inevitable, also makes the case for a “global fincyber [financial-cyber] utility” as the main solution to the catastrophic scenarios it predicts.
Perhaps unsurprisingly, an organization close to top FS-ISAC members has recently been involved in laying the groundwork for that very “global fincyber utility” — the World Economic Forum, which recently produced the model for such a utility through its Partnership against Cybercrime (WEF-PAC) project. Not only are top individuals at FS-ISAC involved in WEF cybersecurity projects like Cyber Polygon, but FS-ISAC’s CEO was also an adviser to the WEF-Carnegie Endowment for International Peace report that warned that the global financial system was increasingly vulnerable to cyber attacks and was the subject of the first article in this 2-part series.
Another article, published earlier this year at Unlimited Hangout, also explored the WEF’s Cyber Polygon 2020 simulation of a cyber attack targeting the global financial system. Another iteration of Cyber Polygon is due to take place tomorrow July 9th and will focus on simulating a supply chain cyber attack.
A major theme in these efforts has not only been an emphasis on global cooperation, but also a merging of private banks and/or corporations with the State, specifically intelligence and law enforcement agencies. In addition, many of the banks, institutions and individuals involved in the creation of these reports and simulations are either actively involved in WEF-related efforts to usher in a new global economic model of “stakeholder capitalism” or are seeking to imminently introduce, or are actively developing, central bank-backed digital currencies, or CBDCs.
In addition, and as mentioned in the first article in this series, a cyber attack like those described in these reports and simulations would also provide the perfect scenario for dismantling the current failing financial system, as it would absolve central banks and corrupt financial institutions of any responsibility. The convergence of several concerning factors in the financial world, including the end of LIBOR at the end of year and the imminent hyperinflation of globally important currencies, suggests that the time is ripe for an event that would not only allow the global economy to “reset”, but also absolve the fundamentally corrupt financial institutions around the world from any wrongdoing. Instead, faceless hackers can be blamed and, given recent precedents in the US and elsewhere, any group or nation state can be blamed with minimal evidence as politically convenient.
This report will closely examine both FS-ISAC’s recent predictions and the WEF Partnership against Cybercrime, specifically the WEF-PAC’s efforts to position itself as the cybersecurity alliance of choice if and when such a catastrophic cyber attack cripples the current financial system.
Of particular interest is the call by both FS-ISAC and the WEF Partnership against Cybercrime to specifically target cryptocurrencies, particularly those that favor transactional anonymity, as well as the infrastructure on which those cryptocurrencies run. Though framed as a way to combat “cybercrime”, it is obvious that cryptocurrencies are to be unwanted competitors for the soon-to-be-launched central bank digital currencies.
In addition, as this report will show, there is a related push by WEF partners to “tackle cybercrime” that seeks to end privacy and the potential for anonymity on the internet in general, by linking government-issued IDs to internet access. Such a policy would allow governments to surveil every piece of online content accessed as well as every post or comment authored by each citizen, supposedly to ensure that no citizen can engage in “criminal” activity online.
Notably, the WEF Partnership against Cybercrime employs a very broad definition of what constitutes a “cybercriminal” as they apply this label readily to those who post or host content deemed to be “disinformation” that represents a threat to “democratic” governments. The WEF’s interest in criminalizing and censoring online content has been made evident by its recent creation of a new Global Coalition for Digital Safety to facilitate the increased regulation of online speech by both the public and private sectors.
FS-ISAC, its influence and its doomsday “predictions” for 2021
FS-ISAC officially exists to “help ensure the resilience and continuity of the global financial services infrastructure and individual firms against acts that could significantly impact the sector’s ability to provide services critical to the orderly function of the global economy.” In other words, FS-ISAC allows the private financial services industry to decide on and coordinate sector-wide responses regarding how financial services are provided during and after a given crisis, including a cyber attack. It was tellingly created in 1999, the same year that the Glass-Steagall Act, which regulated banks after the onset of the Great Depression, was repealed.
Though FS-ISAC’s members are not publicly listed on the group’s website, they do acknowledge that their membership includes some of the world’s largest banks, Fintech companies, insurance firms and payment processors. On their board of directors, the companies and organizations represented include CitiGroup, Bank of America, Wells Fargo and Morgan Stanley, among others, strongly suggesting that FS-ISAC is largely a Wall Street-dominated entity. SWIFT, the society that manages inter-bank communication and dominates it globally, is also represented on FS-ISAC’s board. Collectively, FS-ISAC members represent $35 trillion in assets under management in more than 70 countries.
FS-ISAC also has ties to the World Economic Forum due to the direct involvement of its then-CEO Steve Silberstein in the WEF-Carnegie initiative and FS-ISAC’s participation in the initiative’s “stakeholder engagements.” There is also the fact that some prominent FS-ISAC members, like Bank of America and SWIFT, are also members of the WEF’s Centre for Cybersecurity, which houses the WEF Partnership against Cybercrime project.
At the individual level, the founding director of FS-ISAC, Charles Blauner, is now an agenda contributor to the WEF who previously held top posts at JP Morgan, Deutsche Bank and CitiGroup. He currently is a partner and CISO-in-residence of Team8, a controversial start-up incubator that operates as a front for Israeli military intelligence in tech-related ventures that is part of the WEF Partnership against Cybersecurity. Team8’s CEO and co-founder and the former commander of Israeli intelligence outfit Unit 8200, Nadav Zafrir, has contributed to WEF Centre for Cybersecurity policy documents and WEF panels on the “Great Reset”.
In addition, current FS-ISAC board member Laura Deaner, CISO of Northwestern Mutual, served as the co-chair for the WEF’s Global Futures Council on Cybersecurity. Teresa Walsh, the current global head of intelligence for FS-ISAC, will be a speaker at the WEF’s Cyber Polygon 2021 regarding how to develop an international response to ransomware attacks. Walsh previously worked as an intelligence analyst for Citibank, JP Morgan Chase and the US Navy.
The FS-ISAC’s recent report is worth looking at in detail for several reasons, with the main one being the sheer power and influence that its members, both known and unknown, hold over the current fiat-based financial system. The full report is exclusive to FS-ISAC members, but a “thematic summary” is publicly available.
The FS-ISAC’s recent report on “Navigating Cyber” in 2021 is “based on the contributions of our members and the resulting trend analysis by FS-ISAC’s Global Intelligence Office (GIO)” and includes several “predictions” for the current calendar year. The group’s GIO, led by Teresa Walsh, soon-to-be speaker at Cyber Polygon 2021, also “coordinates with other cybersecurity organizations, companies and agencies around the world” in addition to its intelligence gathering from FS-ISAC members.
At the beginning of 2020, when the COVID-19 crisis resulted in an overt push towards digitization, FS-ISAC launched a “new secure chat and intelligence sharing platform” that “provided a new way for members to discuss threats and security trends.” It is fair to assume that the private discussions on this platform directly informed this report. According to the recent FS-ISAC report, the main trends and threats discussed by its members through this service over the past year were “third party risks”, such as the risk presented by major hacks of third party service providers, like the SolarWinds hack, and “geopolitical tensions.”
The report contains several “predictions for 2021 and beyond.” The first of these predictions is that adversarial nation-states will team up with “the cybercriminal underworld” in order to “obfuscate their activity and complication attribution.” FS-ISAC does not provide evidence of this having happened, but supporting this claim makes it easier to blame state governments for the activities of cybercriminals when politically convenient without concrete evidence. This has happened on several occasions with recent high-profile hacks, most recently with SolarWinds. As noted in previous reporting, prominent companies that contract for the US government and military, like Microsoft, and intelligence-linked cybersecurity companies, are often the sole sources for such narratives in the past and, in those cases, do not provide evidence, instead qualifying such assertions as “likely” or probable.” Even mainstream outlets reporting on FS-ISAC’s “predictions” noted that “FS-ISAC did not point to specific examples of spies relying on such tradecraft in the past,” openly suggesting that there is little factual basis to support this claim.
Other predictions focus on how third party service providers, such as SolarWinds and the more recently targeted Kaseya, will dominate, affecting potentially many thousands of companies across multiple sectors at once. However, the SolarWinds hack was not properly investigated, merely labeled by US intelligence as having “likely” ties to “Russian” state-linked actors despite no publicly available evidence to support that claim. Instead, the SolarWinds hack appears to have been related to its acquisition of an Israeli company funded by intelligence-linked firms, as discussed in this report from earlier this year. SolarWinds acquired the company, called Samanage, and integrated its software fully into its platform around the same time that the backdoor used to execute the hack was placed into the SolarWinds platform that was later compromised.
FS-ISAC also predicts that attacks will cross borders, continents, and verticals, with increasing speed. More specifically, it states that the cyber pandemic will begin with cyber criminals that “test attacks in one country and quickly scale up to multiple targets in other parts of the world.” FS-ISAC argues that it is therefore “critical to have a global view on cyber threats facing the sector in order to prepare and defend against them.” Since FS-ISAC made this prediction, cyber attacks and especially ransomware have been occurring throughout the world and targeting different sectors at a much more rapid pace than has ever been seen before. For instance, following the Colonial Pipeline hack in early May, Japan, New Zealand, and Ireland all experienced major cyber attacks, followed by the JBS hack on June 1. The hack of Kaseya, believed by some to be just as consequential and damaging as SolarWinds, took place about a month later on July 2, affecting thousands of companies around the world.
The final, and perhaps the most important, of these predictions is that “economic drivers towards cybercrime will increase.” FS-ISAC claims that the current economic situation created by COVID-related lockdowns will “make cybercrime an ever more attractive alternative,” noting immediately afterwards that “dramatic increases in cryptocurrency valuation may drive threat actors to conduct campaigns capitalising on this market, including extortion campaigns against financial institutions and their customers.”
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In other words, FS-ISAC views the increase in the value of cryptocurrency as a direct driver of cybercrime, implying that the value of cryptocurrency must be dealt with to reduce such criminal activities. However, the data does not fit these assertions as the use of cryptocurrency by cybercriminals is low and getting lower. For instance, one recent study found that only 0.34% of cryptocurrency transactions in 2020 were tied to criminal activity, down from 2% the year prior. Though the decrease may be due to a jump in cryptocurrency adoption, the overall percentage of crime-linked crypto transactions is incredibly low, a fact obviously known to FS-ISAC and its members.
However, cryptocurrency does present a threat to the plans by FS-ISAC members and its partners to begin producing digital currencies controlled either by approved private entities (like Russia’s Sbercoin) or central banks themselves (like China’s digital yuan). The success of that project depends on neutering the competition, which is likely why FS-ISAC subtitled its 2021 report as “the case for a global fincyber utility,” with such a utility framed as necessary to defend the financial services industry against cyber threats.
The WEF’s Partnership Against Cybercrime
Conveniently for FS-ISAC, there is already a project that hopes to soon become this very global fincyber utility – the WEF Partnership Against Cybercrime (WEF-PAC). Partners in WEF-PAC include some of the world’s largest banks and financial institutions, such as Bank of America, Banco Santander, Sberbank, UBS, Credit Suisse and the World Bank, as well as major payment processors such as Mastercard and PayPal. Also very significant is the presence of all of the “Big Four” global accounting firms: Deloitte, Ernst & Young, KPMG and PricewaterhouseCoopers.
Think tanks/non-profits, including the Council of Europe, Third Way and the Carnegie Endowment for International Peace as well as the WEF itself, are also among its members as are several national government agencies, like the US Department of Justice, FBI and Secret Service, the UK’s National Crime Agency and Israel’s National Cyber Directorate. International and regional law enforcement agencies, such as INTERPOL and EUROPOL, both of which are repeat participants in the WEF’s Cyber Polygon, are also involved. Silicon Valley is also well represented with the presence of Amazon, Microsoft, and Cisco, all three of which are also major US military and intelligence contractors. Cybersecurity companies founded by alumni and former commanders of Israeli intelligence services, such as Palo Alto Networks, Team8 and Check Point, are also prominent members.
The Israeli intelligence angle is especially important when examining WEF-PAC, as one of its architects and the WEF’s current Head of Strategy for Cybersecurity is Tal Goldstein, though his biography on the WEF website seems to claim that he is Head of Strategy for the WEF as a whole. Goldstein is a veteran of Israeli military intelligence, having been recruited through Israel’s Talpiot program, which feeds high IQ teenagers in Israel into the upper echelons of elite Israeli military intelligence units with a focus on technology. It is sometimes referred to as the IDF’s “MENSA” and was originally created by notorious Israeli spymaster Rafi Eitan. Eitan is best known as Jonathan Pollard’s handler and the mastermind behind the PROMIS software scandal, the most infamous Israeli intelligence operation conducted against Israel’s supposed “ally”, the United States.
Due to its focus on technological ability, many Talpiot recruits subsequently serve in Israel’s Unit 8200, the signals intelligence unit of Israeli military intelligence that is often described as equivalent to the US’ NSA or the UK’s GCHQ, before moving into the private tech sector, including major Silicon Valley companies. Other Talpiot-Unit 8200 figures of note are one of the co-founders of Check Point, Marius Nacht, and Assaf Rappaport, who designed major aspects of Microsoft’s cloud services and later managed that division. Rappaport later came to manage much of Microsoft’s research and development until his abrupt departure early last year.
In addition to his past as a Talpiot recruit and 8 years in Israeli military intelligence, the WEF’s Tal Goldstein had played a key role in establishing Israel’s National Cyber Bureau, now part of Israel’s National Cyber Directorate, now a WEF-PAC partner. The National Cyber Bureau was established in 2013 with the explicit purpose “to build and maintain the State of Israel’s national strength as an international leader in the field” of cybersecurity. According to Goldstein’s WEF biography, Goldstein led the formation of Israel’s entire national cybersecurity strategy with a focus on technology, international cooperation, and economic growth.
Goldstein was thus also one of the key architects of the Israeli cybersecurity policy shift which took place in 2012, whereby intelligence operations formerly conducted “in house” by Mossad, Unit 8200 and other Israeli intelligence agencies would instead be conducted through private companies that act as fronts for those intelligence agencies. One admitted example of such a front company is Black Cube, which was created by the Mossad to act explicitly as its “private sector” branch. In 2019, Israeli officials involved in drafting and executing that policy openly yet anonymously admitted to the policy’s existence in Israeli media reports. One of the supposed goals of the policy was to prevent countries like the US from ever boycotting Israel in any meaningful way for violations of human rights and international law by seeding prominent multinational tech companies, such as those based in Silicon Valley, with Israeli intelligence front companies. This effort was directly facilitated by American billionaire Paul Singer, who set up Start Up Nation Central with Benjamin Netanyahu’s main economic adviser and a top AIPAC official in 2012 to facilitate the incorporation of Israeli start-ups into American companies.
Goldstein’s selection by the WEF as head of strategy for its cybersecurity efforts suggests that Israeli intelligence agencies, as well as Israeli military agencies focused on cybersecurity, will likely play an outsized role in WEF-PAC’s efforts, particularly its ambition to create a new global governance structure for the internet. In addition, Goldstein’s past in developing a policy whereby private companies acted as conduits for intelligence operations is of obvious concern given the WEF’s interest in simulating and promoting an imminent “cyber pandemic” in the wake of the COVID crisis. Given that the WEF had simulated a scenario much like COVID prior to its onset through Event 201, having someone like Goldstein as the WEF’s head of strategy for all things cyber ahead of an alleged “cyber pandemic” is cause for concern.
A Global Threat to Justify a Global “Solution”
Last November, around the same time the WEF-Carnegie report was released, the WEF-PAC produced its own “insight report” aimed at “shaping the future of cybersecurity and digital trust.” Chiefly written by the WEF’s Tal Goldstein alongside executives from Microsoft, the Cyber Threat Alliance, and Fortinet, the report offers “a first step towards establishing a global architecture for cooperation” as part of a global “paradigm shift” in how cybercrime is addressed.
The foreword was authored by Jürgen Stock, the Secretary-General of INTERPOL, who had participated in last year’s Cyber Polygon exercise and will also participate in this year’s Cyber Polygon as well. Stock claims in the report that “a public-private partnership against cybercrime is the only way to gain an edge over cybercriminals” (emphasis added). Not unlike the WEF-Carnegie report, Stock asserts that only by ensuring that large corporations work hand in glove with law enforcement agencies “can we effectively respond to the cybercrime threat.”
The report first seeks to define the threat and focuses specifically on the alleged connection between cryptocurrencies, privacy enhancing technology, and cybercrime. It asserts that “cybercriminals abuse encryption, cryptocurrencies, anonymity services and other technologies”, even though their use is hardly exclusive to criminals. The report then states that, in addition to financially motivated cybercriminals, cybercriminals also include those who use those technologies to “uphold terrorism” and “spread disinformation to destabilize governments and democracies”.
While the majority of the report’s discussion on the cybercrime threat focuses on ransomware, the WEF-PAC’s inclusion of “disinformation” highlights the fact that the WEF and their partners view cybercriminals through a much broader lens. This, of course, also means that the methods to combat cybercrime contained within the report could be used to target those who “spread disinformation”, not just ransomware and related attacks, meaning that such “disinformation” spreaders could see their use of cryptocurrency, encryption, etc. restricted by the rules and regulations WEF-PAC seeks to promote. However, the report promotes the use of privacy-enhancing technologies for WEF-PAC members, a clear double standard that reveals that this group sees privacy as something for the powerful and not for the general public.
This broad definition of “cybercriminal” conveniently dovetails with the Biden administration’s recent “domestic terror” strategy, which similarly has a very broad definition of who is a “domestic terrorist.” The Biden administration’s strategy is also not exclusive to the US, but a multinational framework that is poised to be used to censor and criminalize critics of the WEF stakeholder capitalism model as well as those deemed to hold “anti-government” and “anti-authority” viewpoints.
The WEF-PAC report, which was published several months before the US strategy, has other parallels with the new Biden administration policy, such as its call to crack down on the use of anonymity software by those deemed “cybercriminals” and calling for “international information sharing and cross-border operational cooperation,” even if that cooperation is “not always aligned with existing legislative and operational frameworks.” In addition, the Biden administration’s strategy concludes by noting that it is part of a broader US government effort to “restore faith” in public institutions. Similarly, the WEF-PAC report frames combatting all types of activities they define as cybercrime necessary to improving “digital trust”, the lack of which is “greatly undermining the benefits of cyberspace and hindering international cyber stability efforts.”
In discussing “solutions”, the WEF-PAC calls for the global targeting of “infrastructures and assets” deemed to facilitate cybercrime, including those which enable ransomware “revenue streams”, i.e. privacy-minded cryptocurrencies, and enable “the promotion of illegal sites and the hosting of criminal content.” In another section, it discusses seizing websites of “cybercriminals” as an attractive possibility. Given that this document includes online “disinformation” as cybercrime, this could potentially see independent media websites and the infrastructure that allows them to operate (i.e. video sharing platforms that do not censor, etc.) emerge as targets.
The report continues, stating that “in order to reduce the global impact of cybercrime and to systematically restrain cybercriminals, cybercrime must be confronted at its source by raising the cost of conducting cybercrimes, cutting the activities’ profitability and deterring criminals by increasing the direct risk they face.” It then argues, unsurprisingly, that because the cybercrime threat is global in scope, it’s “solution must also be a globally coordinated effort” and says the main way to achieve this involves “harnessing the private sector to work side by side with law enforcement officials.” This is very similar to the conclusions of the WEF-Carnegie report, released around the same time as the WEF-PAC report, which called for private banks to work alongside law enforcement and intelligence agencies as well as their regulators to “protect” the global financial system from cybercriminals.
(TO BE CONTINUED)
SOURCE http://www.activistpost.co
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