Hackers broke into the Bangladesh central bank’s computer systems in early February, 2016, according to the news service, which cited anonymous officials at the financial institution. The attackers stole the credentials needed to authorize payment transfers and then asked the Federal Reserve Bank of New York to make massive money transfers — nearly three dozen of them — from the Bangladeshi bank’s account with the Fed to accounts at other financial institutions overseas. Four transfers to accounts in the Philippines, totaling about $80 million, worked. But then a fifth request, for $20 million to be sent to an apparently fictitious Sri Lankan nonprofit group, was flagged as suspicious by a routing bank because of the “fandation” error.
Bangladesh’s central bank was able to stop that transaction after the routing bank asked for confirmation. “The Sri Lankan bank did not disburse it immediately, and we could recover the full amount,” the central bank told the Financial Times. The requests waiting to be processed — amounting to a total of between $850 million and $870 million, according to an unnamed official cited by Reuters — were also halted. So if it weren’t for that typo, the attackers might have escaped with a bigger payday. Bangladesh’s finance minister has blamed the incident on the Federal Reserve and said his government will “file a case in the international court against” the financial institution, according to the Dhaka Tribune. A New York Fed spokesman denied the accusation, telling The Washington Post in a statement that “there is no evidence of any attempt to penetrate Federal Reserve systems in connection with the payments in question” or that the institution’s systems were compromised. The spokesman said the payment instructions were “fully authenticated” using standard methods.
Excerpts from Andrea Peterson Typo thwarts hackers in $1 billion cyber heist on Bangladesh central bank, Washington Post, Mar. 11, 2016
From the DARPA website
Modern computing systems act as black boxes in that they accept inputs and generate outputs but provide little to no visibility of their internal workings. This greatly limits the potential to understand...advanced persistent threats (APTs). APT adversaries act slowly and deliberately over a long period of time to expand their presence in an enterprise network and achieve their mission goals (e.g., information exfiltration, interference with decision making and denial of capability). Because modern computing systems are opaque, APTs can remain undetected for years if their individual activities can blend with the background “noise” inherent in any large, complex environment. ..
The Transparent Computing (TC) program aims to make currently opaque computing systems transparent by providing high-fidelity visibility into component interactions during system operation across all layers of software abstraction, while imposing minimal performance overhead. The program will develop technologies to record and preserve the provenance of all system elements/components (inputs, software modules, processes, etc.); dynamically track the interactions and causal dependencies among cyber system components; assemble these dependencies into end-to-end system behaviors; and reason over these behaviors, both forensically and in real-time. By automatically or semi-automatically “connecting the dots” across multiple activities that are individually legitimate but collectively indicate malice or abnormal behavior, TC has the potential to enable the prompt detection of APTs and other cyber threats, and allow complete root cause analysis and damage assessment once adversary activity is identified. In addition, the TC program will integrate its basic cyber reasoning functions in an enterprise-scale cyber monitoring and control construct that enforces security policies at key ingress/exit points, e.g., the firewall.
DARPA’s Cyber Grand Challenge takes aim at an increasingly serious problem: the inadequacy of current network security systems, which require expert programmers to identify and repair system weaknesses—typically after attackers have taken advantage of those weaknesses to steal data or disrupt processes. Such disruptions pose greater risks than ever as more and more devices, including vehicles and homes, get networked in what has become known as “the Internet of things.”
“Today’s security methods involve experts working with computerized systems to identify attacks, craft corrective patches and signatures and distribute those correctives to users everywhere—a process that can take months from the time an attack is first launched,” said Mike Walker, DARPA program manager. “The only effective approach to defending against today’s ever-increasing volume and diversity of attacks is to shift to fully automated systems capable of discovering and neutralizing attacks instantly.”
To help accelerate this transition, DARPA launched the Cyber Grand Challenge, the first computer security tournament designed to test the wits of machines, not experts. The Challenge plans to follow a “capture the flag” competition format that experts have used for more than 20 years to test their cyber defense skills. That approach requires that competitors reverse engineer software created by challenge organizers and locate and heal its hidden weaknesses in a live network competition. The longest-running annual capture-the-flag challenge for experts is held at an annual conference known as DEF CON, and under the terms of a new agreement the Cyber Grand Challenge final competition is scheduled to co-locate with the DEF CON Conference in Las Vegas in 2016…
At the event, computers that have made it through a series of qualifying events over the next two years would compete head-to-head in a final tournament. Custom data visualization technology is under development to make it easy for spectators—both a live audience at the conference and anyone watching the event’s video stream worldwide—to follow the action. Details about the Cyber Grand Challenge and some of the other registered teams can be found at www.cybergrandchallenge.com.