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Saturday, January 09, 2010

VENONA Declassified

The National Security Agency's Center for Cryptologic History published a large number of documents about the VENONA project on its Declassification Initiatives section. The VENONA story is a summary of the Intelligence, derived from deciphered VENONA messages, and explains how the codebreakers succeeded in deciphering these important messages.

The top secret VENONA project was initiated in 1943 by the U.S. Army Signal Intelligence Service in Arlington Hall, Virginia, and was continued by its successor, the NSA, until 1980. What started as an attempt to exploit and decipher Soviet diplomatic and trade communications would soon become a vital source of information about Soviet Intelligence operations in the United States. Analysts discovered that portions of the encrypted Soviet diplomatic communications contained espionage related information.

Richard Hallock, Cecil Phillips and Meredith Gardner were the key players in the VENONA decryption efforts. Analysis identified five different ciphering systems on the diplomatic traffic. The messages were encoded into digits with the aid of different sets of codebooks and additionally enciphered with so-called one-time pads (see image right). These one-time pads, containing series of truly random numbers, are added to the message digits. A one-time pad provides mathematically unbreakable encryption if used only once. However, the codebreakers discovered that the Soviets mistakenly reused a small portion of these pads.

Nonetheless, the codebreakers faced an enormous challenge. Due to the vast quantity of intercepted messages, the few reused pads and the lack of Soviet codebooks they had to decipher and reconstruct the messages and codebooks painstakenly, piece by piece, solely relying on cryptanalysis. It took 37 years before they closed project VENONA.

From 1946 on, they began to read portions of KGB (Soviet Security Service) messages that had been sent between the KGB station (rezidentura) in New York and Moscow Center. The derived Intelligence was sensational. When VENONA ended, around 3,000 messages (only a fraction of the intercepted traffic) were partially or completely deciphered. These were mostly communications between the KGB's First Chief Directorate (Foreign Intelligence) and its KGB Station Chiefs.

The messages revealed critical information on KGB and GRU (Military Intelligence) operations in the United States and Great Britain, and the KGB's role in the Soviet consulates, the TASS news agency, COMINTERN and the AMTORG Trading Corporation. The decrypts disclosed massive espionage efforts against the U.S. Departments of State and Justice, the Department of the Treasury, the Office of Strategic Services (OSS), and the War Department.

Information, derived from VENONA, identified many Soviet Intelligence operations, hundreds of Soviet agents and people who collaborated with the Soviets. This enabled the arrest of major Soviet spies such as Klaus Fuchs and Harry Gold (MANHATTAN Project and A-Bomb), the Rosenberg's spy ring, and the identification of Donald Maclean, which lead to the unmasking of "Cambridge Five" members Kim Philby (image) and Guy Burgess.

Because of its importance, and the difficulty to decipher and identify the covernames and codenames in the messages, the VENONA project lasted until 1980, providing the FBI and CIA over the years with vital counter-intelligence information to solve many spy cases. VENONA is a good example of "we will get you, sooner or later", as many spies were arrest upto decades after they stopped spying.

The VENONA story (pdf), many of its deciphered messages and other related documents are found on NSA's VENONA project page (see menu at the right of that page). Another very good reference is The Secret Sentry, recently declassified by The National Security Archive. It contains the extensive 66 page VENONA document and other previously top secret documents, related to the Korean war and Vietnam.


Monday, February 08, 2010

Cuban Agent Communications

The United States has always been the principal foreign target of the Cuban Intelligence Service. Ana Belen Montes, Calos and Elsa Alvarez and Walter Kendall Myers and his wife Gwendolyn are some of the agents who worked for Cuban Intelligence and were jailed for espionage against the United States in recent years.

Information, released into the public, showed that all these illegal agents received encrypted operational messages via shortwave radio, broadcast by Cuban Numbers Stations. These mysterious stations always had a fascinating reputation. They are used by Intelligence Agencies since many decades and have proven to be a most secure way to covertly sent messages behind enemy lines. However, now these most secure shortwave communications provided evidence against all agents that were involved in the Cuban spy cases.

How was it possible that such a solid encryption system failed several times? As it turns out, it were bad implementation and operational procedures that compromised a veteran system of spy trade craft. Just as with the VENONA project (see previous post), these Cuban spy cases are mistakenly refered to as cases of broken one-time pads. On my website you can find a paper I wrote about these espionage cases, how numbers messages work and why the system failed, all based on FBI documents and court papers. You can download or read Cuban Agent Communications (pdf) directly or visit the Papers section on my website.

More information on Cubans espionage in the Unites states is found on the Latin American Studies website. On the CIA FOIA page there's a 14 page information report on selection and training of Cuban intelligence agents abroad (select "View Document in Full for Printing" and zoom in for a good read).


Monday, February 15, 2010

Dead Hand revealed

There have been numerous speculations about the notorious "Dead Hand", developed by the former Soviet Union to counter a nuclear attack by the United States, even when all political and military Soviet leaders would be knocked out by initial attack. Books and many papers are written about the subject by all kinds of "experts", but they all had one common flaw: they were all based on assumptions.

September last year, the National Security Archive published previously classified 1995 interviews with many important former Soviet military and political decision makers. In one of the interviews, Vitalii Leonidovich Kataev, former Senior Advisor to the Central Committee Defense Industry Department (now Defense Department), talks about the real "Dead Hand".

The "Dead Hand" is one of two trigger systems on a system of Command Missiles. These missiles are well concealed and extremely well protected missiles, deployed near clusters of Intercontinental Ballistic Missile (ICBM) silos. Once launched into near space, they transmit launch orders to the clusters of ICBM's they are assigned to. This enables the automated launch of a large numbers of ICBM's, even when military command is disabled by a U.S. nuclear attack

As said, there are two ways these Command Missiles might be launched or 'triggered'. The first one is by central control, when an enemy attack is detected but there's no time left for normal launch procedures (read: when the nukes strike Soviet soil it will be too late, so hit the button). The second way is the notorious "Dead Hand", which is only operational when the decision makers unblock a no-fire mechanism at the center. From that moment on, the launch of a Command Missile is under control of numerous triggers. If the sensors register a flash, seismic shock, radiation or atmospheric density, the Command Missile is launched and in turn will launch its cluster of ICBM's. You can read about the Dead Hand system in the Kataev interview.

This might seem a most scary scenario, left in the hands of computers and sensors. However, it always needs human intervention before activation and was only to be used in extremely threatening situations, where it was expected that all decision makers were already dead upon launch. It is now clear that the Soviets well understood, and feared, the consequences of a nuclear strike, either preemptive or retaliatory, and believed that such scenarios would always be fatal to both the Soviet Union and the United States. The Soviets were absolutely not trigger-happy, but it was an ideal method of Mutual Assured Destruction (MAD) and effective deterrence.

The 1995 study and interviews show how U.S. analysts exaggerated Soviet aggressiveness and understated the Kremlin's fear for nuclear war. It places the Dead Hand doomsday scenario papers, based on assumptions, in another perspective. I can highly recommend a most interesting series of interviews with retired General-Colonel Andrian A. Danilevich, General Staff Officer until 1990 and former assistant for Doctrine and Strategy to Marshal Akhromeev. Download (right-click) or read the Danilevich interview here. More on the Nuclear Vault.


Tuesday, March 30, 2010

2012 Alan Turing Year

On June 23, 2012, it will be 100 years ago that Alan Turing was born in London. He played a vital role in the development of the modern computer, was an ace codebreaker and designer of the Turing bombe that broke encrypted German messages during the Second World War.

Turing went to study at King's College, Cambridge where he graduated in 1934 with first-class honours in Mathematics. From 1936 to 1938 he studied at Institute for Advanced Study, Princeton, New Jersey. He studied pure mathematical work, but also cryptology and he built an electro-mechanical binary multiplier. In 1938 he obtained his Ph.D. from Princeton. After Princeton he also started to work part-time with the Government Code and Cypher School (GCCS), the infamous British WWII codebreakers.

During the war he was the lead man on breaking German military message traffic. He designed the Turing bombe (later enhanced by Gordon Welchman), a device to crack Enigma messages by searching the right settings for a given piece of ciphertext and its presumed related plaintext. He also developed a Bayesian statistical technique to assist in breaking the German naval Enigma. The intelligence profit, gained from his code breaking successes, were a most vital advantage that ensured Allied victory in WWII.

After the war he worked at the National Physical Laboratory on the design of the ACE (Automatic Computing Engine) and presented a paper which was the first detailed design of a stored-program computer. In 1949 he became deputy director of the computing laboratory at the University of Manchester, and worked on software for the Manchester Mk1, one of the earliest stored-program computers. He continued to contribute to early computer development, mathematics and artificial intelligence.

Being homosexual, Turing was convicted in 1952 for alleged misconduct (homosexuality was not allowed by the law) and was given a choice between imprisonment or probation conditional on his agreement to undergo hormonal treatment. Turing's conviction also led to the removal of his security clearance, depriving him of his cryptographic consultancy work for GCHQ. On 8 June 1954, Alan Turing committed suicide by eating a cyanide poisoned apple. The man who saved countless lives with his code breaking during WWII and founder of modern computer science was let down by his country.

On 10 September 2009, British Prime Minister Gordon Brown released a statement describing Turing's treatment as appalling: "Thousands of people have come together to demand justice for Alan Turing and recognition of the appalling way he was treated. While Turing was dealt with under the law of the time and we can't put the clock back, his treatment was of course utterly unfair and I am pleased to have the chance to say how deeply sorry I and we all are for what happened to him ... So on behalf of the British government, and all those who live freely thanks to Alan's work I am very proud to say: we're sorry, you deserved so much better".

More information about the coming events to celebrate the Turing Year are found on the Alan Turing Year website. On this website you will also find a list of excellent resources regarding Alan Turing and his work.


Thursday, April 22, 2010

Mind of a Code Breaker

On You Tube there's a great documentary video from NOVA called World War II Mind of a Code Breaker. It's the story of the British code breakers in Bletchley park and explains the vital role code breaking and Signals Intelligence played during the Second World War. It's a 12 part video, in total 113 minutes, so take your time for it, it's well worth it! A link to the next part is shown at the end of each video, or you can click the links here below.

Parts: [1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12]


Wednesday, April 28, 2010

Noor Inayat Khan Documentary

I already wrote about Noor Inayat Khan in April last year. She's one of the forgotten hero's of the Second World War. Noor was a Special Operations Executive (SOE) agent that operated behind enemy lines, in occupied France. As a wireless operator in Paris she held the most dangerous SOE post in France, with the SD Sicherheitsdienst (the Nazi intelligence service) constantly on her tail.

There's a 50 minutes five-part documentary called "The Princess Spy", in which her relatives go back in her traces to see what she did and how her life tragically and brutally came to and end. A gripping story.

Your can view parts [1] [2] [3] [4] [5] or start the video here below . At the end of each part the video shows a link to the next part (don't forget the maximize button at the bottom-right).

More on the story of Noor Inayat Khan and additional links on this previous post.


Tuesday, June 29, 2010

Large SVR Spy Ring Arrested in the US

On June 27, 2010, ten individuals were arrested in a ten-year joint operation between the FBI (US Federal Bureau of Investigation) and the Counterespionage Section and the Office of Intelligence within the Justice Department’s National Security Division. The FBI used a wide range of counterintelligence and investigation techniques to observe the Illegals and collect evidence. The arrest were announced at the U.S. Department of Justice Briefing Room.

All ten individuals allegedly carried out long-term deep-cover operations on US soil on behalf of the Russian foreign intelligence agency SVR (Sluzhba Vneshney Razvedki). Goal was to recruit sources in policy-making circles and collect Intel to send back to Russia. The court documents (see below) read as a real Cold War thriller. The perfect stuff for books and movies! Another example of how the Cold War still lives on as a Cold Peace.

The court complaint documents reveal numerous details on the espionage activities and a range of true spy craft methods to communicate. Moscow Center (SVR Headquarters) used non-commercial steganographic software to insert text messages in images, located on publicly available websites. During surreptitious searches, the FBI discovered and copied sets of computer disks containing steganographic software and found a hidden paper with a 27 characters key. Website links, retrieved from their hard-drives, directed to website images that contained well over 100 hidden messages, communications between the Illegals and Moscow. These so-called Internet Messages contained all kinds of operational instructions.

The Illegals also received encrypted radio messages by burst transmission (sending data on high speed). The FBI also found a short-wave radio and photographed notebooks with column of seemingly random numbers during another surreptitious search. These are typically used to receive encrypted numbers messages. During audio surveillance (bugging) of the suspects house, the FBI heard the sounds of receiving a burst transmission. Surveillance of conversations in their house also revealed the use of invisible ink to convey messages to Russian government officials.

To enable clandestine payments from the SVR to the Illegals, they travelled to South American countries to receive money and returned to the US with the money hidden in the luggage. In the US they exchanged bags with money in various city parks. Several of these exchanges were recorded during FBI video surveillance.

The FBI searched bank safe deposit boxes containing documents, photos and US and Canadian birth certificates, to create the false identities of the Illegals. The Illegals also received false British and Irish passports to travel via Europe to Russia. The required false passports were provided by brush-passes in Europe. On one occasion, an Illegal was ordered to buy a laptop in the US and bring it along to Moscow. When he returned to the US with the - probably SVR customized - laptop, he received instruction on how to use it for communications with Moscow.

Christopher Metsos, a secret SVR agent, assisted the spy network but was based outside the Unites States. He was arrested on 29 June in Cyprus. He had several meetings with the network members. These meetings were recorded on video by the FBI. Metsos also received money from a Russian diplomat. One part of the money was given to other Illegals and another part was buried in New York. Two years later, another conspirator dug it up. Several other money exchanges were done by a so-called brush-pass, where they swapped bags when passing each other on the train station stairs. Several other brush-passes between Russian government officials and the Illegals to exchange cash and a memory stick were observed by the FBI.

Another method of covert communications involved private wireless networks to connect Laptops by LAN (Local Area Network) withing a limited distance. Russian citizen Anna Chapman, born Anya Kushchenko, the red haired spy vamp and one of the illegal SVR agents (see photo), was observed ten Wednesdays in the vicinity of a Russian government official. In one occasion, she used her laptop in a coffee shop while a black minivan stopped along the coffee shop. FBI registered a network connection between their two PC MAC addresses. Other LAN connections were established between the Chapman in a book story and the Russian official across the street and between Illegal agent Mikhail Semenko in a restaurant and a car with diplomatic licence plate on the parking.

Last Saturday, after having problems with her wireless network exchanges, Anna Chapman was lures into a sting operation by an FBI undercover agent. Pretending to be a Russian official, he asked her help to deliver a false passport to a supposedly illegal agent. Surveillance right after the meeting showed that Chapman bought a cellphone and pre-payed card under a false name, apparently to contact SVR after she got suspicious. She did not appear on the sting meeting on Sunday. A similar sting operation ran against Mikhail Semenko on that same Saturday. An FBI undercover agent met with Semenko and discussed with him about his network communications. Semenko was asked to deliver money by dead-drop (a hidden cache) in a park on Sunday. He was observed carrying out the assignment last Sunday, the day that the complete network was arrested.

All alleged spies, or at least illegals having contact with Russian intelligence, are charged with conspiring to act as unregistered foreign agents and eight of them with money laundering. They are currently not charged with espionage and it is unclear if and what information they sent to Russia and whether this information damaged US national interest.

You can find the criminal complaints with the results of the FBI investigation on the U.S. Department of Justice website or you can read or download them direct from the following links: Complaint1 (pdf 1.2 Mb) The United states vs Anna Chapman and Mikhail Semenko and Complaint2 (pdf 2.3 MB) The United states vs Christopher R. Metsos, Richard Murphy, Cynthia Murphy, Donald Howard Heathfield , Tracey Lee Ann Foley, Michael Zottoli, Patricia Mills , Juan Lazaro and Vicky Pelaez. Finally, here are the Deparment of Justice Metsos and Mills, Zottoli and Semenko bail letters.

Update July 3: until now, three suspects have admitted the use of a false identity. Michael Zottoli told investigators he is a Russian citizen and that his real name is Mikhail Kutzik. Patricia Mills confessed that her name is Natalia Pereverzeva and all her family and relatives live in Russia (see Detention Letter). Juan Lazaro admitted working for the SVR under a false name but refuses to give his true identity. Anna Chapman, nee Anya Kushchenko, is identified as the daughter of Vasily Kushchenko, a high-ranked MID (Ministry of Foreign Affairs) official and, according to her ex-husband, a senior KGB officer (see Telegraph UK). Christopher Metsos, who was arrested in Cyprus, disappeared withing 24 hour of being bailed. Therefore, the Department Of Justice requested the Judge to refuse any bail for the other suspects.

Update July 9: the 10 suspects are exchanged with 4 Russian individuals that served sentences in Russia for alleged cooperation with Western intelligence services. More information is found in my US - Russian Spy Exchange blog post.

This case is another example of how difficult these covert communications are in today's digital world, and why it is a very bad idea to combine normal personal computers with cryptography and espionage. Modern covert communications are countered with just as modern surveillance and interception, and old-school espionage communications still depend on human success and failure. The Cold Peace hasn't changed that much since the Cold War. More about FBI successes on catching Cuban spies at my Cuban Agent Communications blog and paper.

A follow up with numerous articles is published on the CI Centre news page and more will follow. Some media on this case: Spies in the suburbs on BBC News. Anna Chapman on Mail Online and on ABC News. Background info on Richard and Cynthia Murphy on CI Centre and the New Jersey Star. Spy ring financial intel on CNN Fortune. Donald Heatfield on the New York Times. Michael Zottoli and Patricia Mills on The Seattle Times. Vicky Pelaez on NY Daily News. Juan Lazaro on CBS News. Why Russia and the US still Spy by Peter Earnest. The Illegals Program on Wikipedia. Dismanteling Russian operation at STRATFOR. Richard and Cynthia Murphy on Telegraph UK.

Interview with Anna Chapman, earlier this year (CNN).

I will add more links to additional information in the next few days...


Tuesday, June 29, 2010

Peace Ambassador of the Cold War

The story of Samantha Reed Smith is both amazing and tragic. She became a symbol of hope and friendship during the Cold War era and she managed to obtain an answer about the nuclear threat, straight from the ultimate source within the Kremlin. Few realised back then that what she learned from her source was a correct view on Soviet strategic intentions, a view that was recently backed-up by declassified interviews with Soviet policy makers and high ranked Soviet military. An achievement even the CIA could not match. The amazing thing about her is that she was only 10 years old and her source was Soviet President Yuri Andropov.

The early 1980's brought a new rise in tensions between the Soviet Union and the United States. After years of so-called détente, a new build-up of strategic nuclear weapons started in both East and West. In November 1982, ten year old American Samantha Smith took the bold decision to write a letter to the newly appointed Soviet leader Yuri Andropov. Driven by the fear for a global war, she wanted to ask Yuri Andropov whether he had peaceful intentions or that he wanted war, as some media wrote. Here's her actual letter to the Soviet Leader:

"Dear Mr. Andropov,

My name is Samantha Smith. I am ten years old. Congratulations on your new job. I have been worrying about Russia and the United States getting into a nuclear war. Are you going to vote to have a war or not? If you aren't please tell me how you are going to help to not have a war. This question you do not have to answer, but I would like to know why you want to conquer the world or at least our country. God made the world for us to live together in peace and not to fight.

Sincerely,

Samantha Smith "

The Soviet newspaper Pravda published her letter but she did not receive any reply. Therefore, she wrote to Soviet Ambassador to the United States Anatoly Dobrynin, asking him whether Andropov would answer or not. And he did! On April 26, 1983, she received a response from President Yuri Andropov himself, in which he explained that the people of the Soviet Union wanted to live in peace and would never ever be the first to use nuclear weapons or start a new World War. He also invited her to visit the USSR, meet children of her own age and visit an international children's camp. She attracted massive media attention in the USSR and the US, and she became known as America's youngest ambassador.

On July 7, 1983, Samantha flew to Moscow with her parents. During the two week trip, she visited Moscow and Leningrad, and went to the Artek pioneer camp. She was struck by the friendliness of the people and told on a Moscow press conference that the Russians were "just like us". Five months later, she visited Japan as child goodwill ambassador. Others followed in her footsteps, including eleven year old Katya Lycheva from the Soviet Union, who visited the United States. Samantha also became a media celebrity, hosted a special on Disney Channel, wrote the book "Journey to the Soviet Union ", interviewed politicians and co-starred with Robert Wagner in the television series "Lime Street".

25 years ago, on August 25, 1985, tragedy struck when Samantha Smith and her father died in a plane crash. Their small Beechcraft 99 crashed just before landing, killing all six passengers and two crew on board. She was mourned by millions of people at home and in the Soviet Union. Vladimir Kulagin from the Soviet Embassy, who attended the funeral, read a personal message of condolence from Mikhail Gorbachev, and President Reagan sent his condolences in writing to her mother. The Soviet Union issued a commemorative stamp, built a monument in Moscow and even named an asteroid to her. Manchester, her hometown in Main, honored her with a statue and the first Monday in June of each year is officially named "Samantha Smith Day" in Maine. In 1985, Samantha's mother also founded the Samantha Smith Foundation, which fostered student exchanges between the the US and the USSR.

"When Samantha Smith was killed in a plane crash, millions of people all over the world grieved as if for their own child. For, in a way, she was a child of the world - a symbol of childhood itself, a guardian of our dreams and hopes for children everywhere" (from Citizen Diplomats: Pathfinders in Soviet American Relations)

The Samantha Smith website brings the story of this little girl that, in her own way, brought East and West a bit closer and sparked a glimmer of hope, something many diplomats and politicians could not achieve back then. On her website, you can see Andropov's letter, read about the foundation, view many images (use "next page" at the bottom of each page) and visit her Youtube channel with videos about her visit to the USSR and interviews . The US Embassy in Russia also has a tribute page on Samantha. Her innocently naive, yet noble initiative resulted in a written statement from the Soviet leader that the Soviet Union would never start a nuclear war. It might sound naive but, as the records have shown, it was true. Her noble intentions to bring people together should be an example to all of us, never to be forgotten.


Friday, July 09, 2010

US - Russian Spy Exchange

On July 9, 2010, the sensational case of the 10 Russian illegal agents, arrested in the United States, has come to an end with the largest spy exchange since the end of the Cold War.

During the July 8 Southern District of New York court hearings they all pleaded guilty to conspiracy to act as an agent of a foreign government. Under the plea agreements, they had to disclose their real identities, all their assets were confiscated and they were expelled immediately from the United States. They are transferred to the Russia. In exchange, Russia agreed to release four individuals that were jailed for their alleged contact with Western intelligence services. This solution to the spy case was arranged after extensive negotiations between the US and Russia to avoid any tensions in relations between the two countries.

Andrey Bezrukov (a.k.a. Donald Howard Heathfield) and Elena Vavilova (a.k.a. Tracey Lee Ann Foley), the couple with two sons age 16 and 20, Mikhail Anatonoljevich (a.k.a. Juan Lazaro) and Peruvian born Vicky Pelaez who have a son together, Vladimir Guryev (a.k.a. Richard Murphy) and Lydia Guryev (a.k.a. Cynthia Murphy) who have two daughters age 9 and 11, Mikhail Kutsik (a.k.a. Michael Zottoli) and Natalia Pereverzeva (a.k.a. Patricia Mills), Mikhail Semenko (who operated under his real name) and Anya Kushchenko (a.k.a. Anna Chapman) were all deported by airplane on July 9. Christopher Metsos, whose real name remains unknown, disappeared in Cyprus after being bailed. The spy exchange took place at the tarmac of the Vienna's Schwechat airport in Austria, with the Russian and US airplanes next to each other (photo AP).

Another airplane, coming from Moscow, carried the four men who were released by the Russian Federation. They are all Russian citizens who allegedly cooperated with intelligence services in the West: Igor Sutyagin, a Russian arms control and nuclear weapons specialist was sentenced to 15 years in 2004 for passing information on nuclear submarines and other weapons systems to a British firm that, according to Russia, was a CIA cover. Sergei Skripal, a former Russian military intelligence colonel was serving a 13 years sentence since 2006 for passing the names of dozens of Russian agents to the British Foreign Intelligence Service MI6. Alexander Zaporozhsky, a former colonel in the Russian Foreign Intelligence Service SVR (Sluzhba Vneshney Razvedki) was convicted for passing information on Russian agents that operated in the US. He served an 18 years sentence since 2001. The last one is Gennady Vasilenko. His background is unclear but he appears to be a former KGB officerwho had contact with the CIA. He was arrested in 2005, while working as security officer at NTV television, and charged with illegal possession of arms and resistance to arrest. Apparently, he was not convicted for espionage.

After the exchange, the Russian airplane returned to Moscow’s Domodedovo airport with the 10 expelled SVR agents. The other airplane flew from Vienna to the RAF base in Brize Norton, United Kingdom, to drop off Igor Sutyagin and Sergei Skripal, and then continued to Washington Dulles International with Andrey Bezrukov and Alexander Zaporozhsky. The exchanged spies will surely undergo extensive debriefing in Russia, the UK and the United States.

The big spy swap was announced officially by a US Department of Justice statement. US Attorney General Eric Holder stated that "this was an extraordinary case, developed through years of work by investigators, intelligence lawyers, and prosecutors, and the agreement we reached today provides a successful resolution for the United States and its interests."

More details and court documents are found in my blog on the Russian Spy Ring in the United States. As part of the plea agreement the 10 agents are not allowed to release any information on the spy case in the media, although this is stuff for many books and movies. Nevertheless, we will undoubtedly learn more details later on. The investigation and the extensive surveillance took 10 years and not all of the results were disclosed in court. Who were their contacts? Did they recruit people? Are US citizens involved? Case not closed...


Tuesday, July 20, 2010

KP4EU Enigma Video

Angel Saavedra (KP4EU) from Puerto Rico, one of the Enigma Challenge competitors, compiled a most beautiful video about the Enigma machine. The video is a tribute to the famous cipher machine and it even shows my Enigma software. The radio Hams among us should take a pencil and paper as there's also a Morse message to copy. The message is his way to say thanks for the Challenge and the Enigma simulator. Muchas gracias, Angel!


Saturday, July 24, 2010

The Farewell Dossier

Farewell is a recent Cold War espionage movie, based on the actual case of Vladimir Vetrov, an engineer who worked at the KGB's Directorate T. The 2009 movie was shown at several film festivals and is recently released.

The real story of Farewell begins at the end of the 1960's, when Soviet R&D in the field of electronics and computers trailed the West by a decade. In 1970, a new organisation, called Directorate T, was established within the KGB to start an aggressive intelligence collection of Western science and technology. Line X was it's operational section with many KGB and GRU officers covertly operating in foreign Rezidentura across the world.

The Line X operations were most successful and produced thousands of high quality R&D documents that could enable the Soviets to close the gap with the West, if it wasn't for their inability to organise the required corresponding industry and economy. Nevertheless, Line X provided crucial information that enabled the development and copying of Western technology on a large scale. It saved them billions of Russian Ruble.

In 1981, French President Mitterand personally informed US President Ronald Reagan that the French intelligence service DST had a source within Directorate T. KGB Colonel Vladimir Vetrov, codenamed Farewell, was stationed as Line X officer in France during the 1960's and later on, in Moscow, supervised the evaluation of all intelligence, collected by Line X. He revealed the names of more than 200 Line X officers, many of their recruited agents, and provided information about the Line X targets. Although Western intelligence suspected the Soviet collection of R&D, they were astonished by its size and success.

Farewell initiated one of the most important deception operations of the Cold War. Instead of dismantling the Line X operations, US intelligence decided to feed Line X with false information that appeared genuine but would fail later on, when actually applied. Knowing exactly what Line X was looking for, the CIA and FBI supplied the KGB with all kinds of flawed technology. A remarkable aspect of the operation was that, if discovered by the Soviets, it would still be a success, as the Soviets would be suspicious about anything that was collected by its Line X officers.

Farewell enabled the US to keep ahead of Soviet military technology, economics and industry, and played an important role in the aggressive US arms build-up to lure the Soviets into keeping pace with the American military industry. The Soviet efforts to close that gap eventually lead to the bankruptcy and collapse of the Soviet Union. Reagan called Farewell one of the most important espionage cases of the 20Th century. You can read the full story on the Farewell Dossier on the CIA's Studies in Intelligence. The Mitrokhin Archive (see my book reviews) also contains information on Soviet science and technology espionage, the Farewell case and on Vetrov.

In the movie, Colonel Vetrov's name is changed into Grigoriev. As for the rest of the story, any resemblance with real persons and events is not a coincidence. You can watch the Farewell Movie trailer (HD) at Youtube or here below. More about the movie and user revies at the Internet Movie Data Base. Don't read the spoilers! Farewell is not a flashy action movie but one in the genre of the brilliant The Lives of Others (see its trailer, and make sure to get the original and subtitled version) or The Russia House, about ordinairy people who get involved in espionage and how it profoundly changes their lives. Movies that leave you speechless after seeing them.



Friday, August 6, 2010

Holiday Reading Stuff

We're half-way trough the holidays, and while some of us will surely have an exciting and adventurous vacation, some others will have to obey their wife's request for a lazy baking-brown-vacation on some remote club hotel swimming pool.

For those unfortunate ones who don't have any idea on how to survive those long hours at the pool, I selected a list of excellent previously posted papers. Behind each paper there's a [i] link to additional information. I suggest to print them out - leave your laptop at home - and put them in your luggage. All files are downloadable by right-clicking and selecting "Save Target As..." You'll have many hours of reading fun, instead of boring things like observing other husbands wives in bikini.

1. USSR General Col. Danelevich Interview [i]
2. Cuban Agent Communications [i]
3. Assessment Aldrich Ames case [i]
4. The Berlin Tunnel Operation [i]
5. Ana Belen Montes Affidavit [i]
6. East German SIGINT Operations [i]
7. Anna Chapman and Mikhail Semenko complaint [i]
8. David Boak's COMSEC Lecture [i]
9. Analysis John Walker Case [i]
10.Report on the First Nuclear Explosion [i]

I also compiled a zip with several interviews and reports on major espionage cases, which is available on simple request by e-mail (don't forget to add your e-mail address).

And if you take your MP3 player with you on vacation, here's a great BBC4 Radio program on Numbers Stations. Recent espionage cases like the SVR spy ring in the US, the Kendall Myers, Carlos Alvarez or Ana Belen Montes cases have shown that the era of these Cold War spy stations is far from over.

A tip: although all these documents are declassified, some airport customs might experience an anafylactic shock while viewing them. If you do want to cross a border, put the papers in your wife's luggage and deny everything. Burn after reading (the papers, not the wife)!


Thursday, September 9, 2010

One-time encryption in Today's World

Ontime pad encryption is a most basic encryption algorithm where a truly random key is applied on a given amount of data. The nice thing about it is that this method, which was invented 93 years ago, is mathematically unbreakable. There's no way to crack it with current or future computer power, simply because it is mathematically impossible. Although this sounds impressive, there are some drawbacks. The key must be truly random, must be as long as the actual data that should be encrypted, and you can use a particular key only once. The consequence is a cumbersome key distribution with associated security problems.

Before we go any further, I must point out here that we're going to talk about modern one-time encryption applications, not the pencil-and-paper spy craft (see image). Neither is this about small one-time passwords or one-time keys which are only valid for a single encryption session with some algorithm under control of that key, and certainly not about the many snake-oil applications that pretend to be unbreakable because they claim to be using one-time encryption, while they actually are not. Remember: key as long as the data, truly random and used only once. There's no way around these three conditions without messing up the unbreakable part.

So, cumbersome key distribution...and that's where the mathematicians, or crypto-experts as you like, come in the play. In 1973, they invented asymmetric encryption which solves the problem of key distribution. Symmetric encryption requires the same key for encryption and decryption, and all people involved need a copy of that same key. With asymmetric public key cryptography however, you have key pairs that consist of a public key for encryption which you can share openly with everybody, and a private key for decryption that you keep secret. This solves the problem of key exchange. Since the invention of asymmetric key encryption, many crypto experts are buzzing around that it is the holy grail. Well...not quite.

Their system has nothing to do with the message security, only with the - unproven - key exchange security. Unfortunately, asymmetric encryption is not suitable for the encryption of large amounts of data. Hence, we only use it to encrypt a random key. Next, the actual data is encrypted with a traditional symmetric encryption algorithm, under control of that key. Finally, we send the complete package, encrypted key and encrypted data, to the recipient. Key distribution problem solved! What actually happened is that they took traditional symmetric algorithms, of which they are are not really sure whether they are secure (they are not, as they are deterministic), but hey, they found an easy/lazy way to exchange the keys for those traditional algorithms. Problem solved. Doooh!?

Bearing this in mind I just love David Boak's (NSA) magnificent quote: "the ‘approved’ systems have simply been shown to adequately resist whatever kinds of crypto-mathematical attacks we, with our finite resources and brains, have been able to think up. We are by no means certain that the [opponent] equivalent can do no better". This says alot, if not all.

How secure their asymmetric encryption might be, it doesn't change the fact that the actual data is encrypted with a traditional symmetric encryption algorithm and that's not a question of so-called insurmountable mathematical problems to crack asymmetric encryption, but a question of cryptanalysis of man-made algorithms, prone to weaknesses (not to mention mathematical shortcuts, back doors or bluntly faulty application). By the way, didn't Auguste Kerckhoffs and Claude Shannon learned us that, if we don't know how to break it, it isn't unbreakable, and any system that reduces a large secret (the data) to a smaller secret (a key) is deterministic and will never be unbreakable,

What happened is that, by focusing on the practical advantages of asymmetric key encryption and welcoming its large scale application and commercialisation, many mathematicians lost track of what really matters: message security. They say that one-time encryption is rendered superfluous in the era of asymmetric encryption. Just because it's less practical? By saying this, they actually prove themselves wrong, as the one has nothing to do with the other. They solved the key distribution problem and not the message security problem. One time encryption, on the other hand, solves the message security perfectly (isn't that what we really need) but has a nasty key distribution issue. It would have been nice if those wizz kids solved that one! Well, maybe they did, but just don't tell us...but I doubt that. Cryptography is always a balancing between effort (comfort), costs and security. You can favor one of those - a bit - to the prejudice of the others, for a particular situation, but you can't say that comfort is better than security, an should never nibble on security in favor of comfort when security is important.

Modern crypto algorithms provide reasonable but practical security and privacy, essential to our economy and everyday life. Sure, it made our lives easier and how else could we do all those things like buying on the Internet, using credit cards on-line, and many other things. But let us be serious, the combination of traditional encryption algorithms and asymmetric key algorithms provides nothing more or less than 'reasonable' security, and it will never provide real security or long term security. But what is worse, is that the general public has become blinded by today's easy encryption systems and their commercial success. They don't realize that real privacy and security comes with a price called "effort & discipline", not to be confused and - unfortunately - incompatible with "easy-to-use". This might not be essential to the average man in the street, but it does matter if we talk about a company's production secrets, trade secrets or political activism, to name a few.

Some experts argue that the distribution of large quantities of keys, inherent to one-time encryption, is impractical. However, today’s electronics are capable of generating large numbers of truly random keys, and current one-time encryption software can process large quantities of data at high speed. Current data storage technology such as USB sticks, DVD’s, external hard disks or solid-state drives enable the physically transport of enormous quantities of truly random keys. Actual sensitive communications are often limited to a small number of users. In such cases, one-on-one communications with the associated key distribution, possibly in configuration with a star topology to connect multiple users, is no longer really a practical problem, especially considering the security benefits (this quote will not be popular with cryptologists, but it is true).

By using a co-called sneakernet (transferring data on removable media by physically couriering), you can reach a throughput (amount of data per unit time) of one-time key material that is greater than what a network can process on data that must be encrypted. In other words, it could take a few hours to get a terabyte of key material, stored on an external drive, by car to someone, but it will take days or even weeks to consume that amount of keys on a broadband network. A terabyte sized key can easily encrypt you e-mail traffic for a year, including attachments (you just try to send or receive a terabyte of data, most Internet providers won’t even offer such amount of traffic). Therefore, if security is preferred above practical key distribution, and physical key exchange is possible beforehand, then one-time pad is the right choice. Some commercial firms offer such one-time encryption solutions, mostly to government and defense agencies, and for good reasons.

Conclusion: yes, public key algorithms are useful and have earned their place in the market of reasonably secure large scale communications, and yes, one time encryption will stay the preferred solution when unconditional security is required. Stop comparing apples and oranges, we need both! And for anyone who states that one-time encryption is history, I have one advice: provide the actual mathematical proof that your asymmetric system and accompanied symmetric algorithm are safe, today and tomorrow (I can with one-time encryption). Bring it on, Bruce!

I wrote a paper called Is One-time Pad History, about one-time encryption and the illusions of modern computer cryptography. More about the history of one-time pad on my website. On Mils Electronic, a key technology company, there's more about one-time encryption (pdf) and secure message exchange (pdf).


Thursday, September 12, 2010

Operation Ivy Bells

Both the United States and the former Soviet Union ran numerous aggressive Signals Intelligence (SIGINT) operations against each other during the Cold War era. A most spectacular one was operation Ivy Bells, a top secret joint operation between the US Navy, the Central Intelligence Agency (CIA) and the National Security Agency (NSA). Ivy Bells enables the eavesdropping on high level communications of the Soviet Pacific Fleet.

Communications cables were, and still are, an interesting target for intelligence agencies. The 1953 Berlin Tunnel operation is a well known example of the tapping of a land cable. Especially in the pre-satellite era, undersea cables were the only method of high-volume communications between continents or islands. In the early 1970's, the US discovered the existence of such an undersea cable in the Sea of Okhotsk, in the north-east of the Soviet Union.

The cable connected the Soviet naval submarine base in Kamchatsky, north-east of the Kuril Islands, with Vladivostok Fleet headquarters in the south-west. Both bases played an important role in the Soviet Pacific Fleet communications. Although a very attractive intelligence target, the Sea of Okhotsk was Soviet territorial waters, forbidden for foreign ships and heavily protected. The Soviets also carried out many surface and subsurface naval exercises in these waters. An attractive target but far from friendly enviroment.

Despite the high risks to a SIGINT operation in that area, US intelligence could not pass this opportunity and started a most complex top secret operation to tap into the Okhotsk cable. In October 1971, the nuclear submarine USS Halibut (SSGN-587) entered the Sea of Okhotsk in search of the cable. Saturation divers with special rebreather equipment eventually found the cable at a depth of 400 feet (120 m) and installed a 3 feet (1 m) long tapping device, which was wrapped around the cable to register the signals by induction. This avoided the need for piercing trough the cable.

The signals were recorded on tapes that were recovered on a regular basis. To its surprise, NSA discovered that the Soviets felt so confident about the security of the undersea cable that the majority of the communications were unencrypted. Needles to say that the gained intelligence was invaluable. Due to its success, Bell Laboratories was asked to develop a new tapping device that could capture more lines simultaneously from the cable and could record for several months.

The new ingenious tap, which was installed the next year, measured 20 feet (6 m), weighed 6 tons and had a nuclear electrical power source. Each month, the USS Halibut divers retrieved the recording tapes and installed new ones. Back in the US, the tapes were analysed by the NSA and processed for further use in the intelligence community. It proved to be a spectacular intelligence coup. The tapes provided a front seat view on Soviet naval operations.


The 20 feet 6 tons tapping device for the Soviet cable in the Sea of Okhotsk

Operation Ivy Bells's success lead to further operations to install more advanced tapping devices onto other Soviet undersea cables across the world. Several other submarines were brought into the operation to install taps and retrieve recordings. The operation lasted for a decade, until surveillance satellites showed several Soviet war ships on top of the Okhotsk tap. A US submarine later discovered that the tapping device was disappeared. As it turned out in 1985, the top secret operation was betrayed in 1981 by Ronald Pelton, a former NSA employee. Nonetheless, US intelligence retrieved an enormous quantity of military information during the ten years of tapping the undersea cables, giving them an important lead in the Cold War.

More about Operation Ivy Bells on Special Operations Com and on Everything2. On AboutSubs you'll find more on the heroic USS Halibut (SSGN-587) and there's a 1960 video on USS Halibut on New Zealand History. FAS published the interception capabilities 2000 report, which includes information on subsea cables and submarine cable interception. More about the Berlin Tunnel land-line tap on this previous post.


Monday, September 27, 2010

Former Stasi Cryptologists work for NATO

Archives from the former East-German Ministerium für Staatssicherheit (MfS), better known as the Stasi, have already shown the excellent skills of their SIGINT (Signals Intelligence) department HA III. Little was known about what happened with all those most capable experts after the fall of the Berlin Wall and the collapse of the former German Democratic Republic...until now.

The German magazine Der Spiegel now revealed that cryptologists from the former East-German central cipher bureau ZCO (Zentralen Chiffrierorgan), were secretly recruited by the German Federal Office for Information Security BSI (Bundesamt für Sicherheit in der Informationstechnik ). They are now employed at Rohde & Schwarz SIT GmbH, a front company for the secret recruiting operation and a subsidiary of the renowned German communications and security firm Rohde & Schwarz.

The Stasi cryptologists had already proved very successful in both making and breaking codes during the Cold War era. They managed to break several encryption systems, including the secure communications of the West-German Foreign Intelligence Agency BND (Bundesnachrichtendienst). The last thing the German government wanted, after the dissolving of East-Germany in 1990, was the exodus of Stasi crypto expertise to other countries. The defection of these cryptologists and a compromise of Western encryption technology to rogue states would be a nightmare. It was decided to recruit them, whatever it takes.

Rohde & Schwarz SIT became both a surreptitious employment pool for former Stasi crypto experts and a most successful subsidiary of Rohde & Schwarz, in both commercial and security point of view. SIT took over Siemens' cryptology division and employs many of Germany's top mathematicians. They are specialised in Information and Communications Security, offer encryption for numerous analog and digital systems, and are currently an important supplier of high security crypto equipment for NATO (image above: Rohde & Schwarz Elcrodat 4-2 voice and data encryption).

Or how a former enemy of NATO (and partner of the Soviets) became a vital part of NATO's communications security. At the end, the secret operation prevented critical crypto expertise to go awalk and provided experienced mathematicians for BSI's crypto bureau. A win-win situation.

Let's just hope that none of these Stasi cryptologists are still serving their old mentor, the former KGB 8th Main Directorat Communications and Cryptography (now absorbed by Russia's SIGINT agency FAPSI). I'm sure the German Federal Intelligence BfV (Bundesamt für Verfassungsschutz) has them all checked thoroughly. Nevertheless, recruiting old enemies is a hazardous undertaking (see Heinz Felfe), and far-sighted Russian Intelligence has a splendid record in long-term planning regarding former Soviet states (see also Hermann Simm).

The full story, in English, can be read on the website of Der Spiegel. Do also visit the Rohde & Schwarz SIT GmbH website. On the splendid SAS- und Chiffrierdienst website you will find more information about the East-German Zentralen Chiffrierorgan (ZCO), and plenty of info and images of Stasi encryption equipment (click its "Technik" link at the lower left). More about the Stasi SIGINT capabilities on this previous blog, and more on Russia's FAPSI (today's counterpart/sister agency of the former ZCO) on this previous blog.


Tuesday, October 19, 2010

Mysterious Cold War Signals

An important part of the Cold War was fought in the aether. All sorts of radio signals, communications in voice, Morse or in data, radar and navigation signals were transmitted and intercepted by East and West. A shortwave receiver with a good antenna was, and still is, all you need to discover innumerable signals. Of course, these signals also caught the attention of both Intelligence organisations and civilian radio amateurs.

TechELINT (Technical Electronic Intelligence), the interception and analysis of signals from weapons systems, navigation and radar systems, were an important part of the Cold War, and still are an indispensable part of modern intelligence gathering and warfare. What system is a signal originating from, what does it tell about the opponent's equipment and its performance, and how can we take countermeasures? Advances in electronics for communications and weapons systems constantly fueled a race between those who developed various types of transmitters and those who wanted to intercept and analyse these signals.

Often, the secrets behind the signals were revealed, either by TechELINT or espionage. However, some signals remained unidentified and a few of them even rose to the stardom of mysterious Cold War signals. There was much speculation about the purpose of these signals, some of which broadcast continuously for decades. Possible explanations were occupying certain frequencies to have them available in case of a crisis or war, or even the notorious so-called Dead Hand, an autonomous launch system for nuclear missiles that supposedly would be activated if the mysterious signals were interrupted because of the elimination of Soviet military command. Scary scenarios! Nothing more than speculations.

One of these mysterious signals was nicknamed the Russian Woodpecker, because of its characteristic repetitive tapping noise. The Woodpecker's annoying high-power signal (an estimated 10 Megawatt) switched between different shortwave frequencies and disrupted legitimate utility and amateur broadcasts all over the world. The broadcast started in 1976 and continued for 13 years. For decades, its purpose remained unknown to the general public.

After the fall of the Soviet Union it was confirmed that the strange signal originated from an over-the-horizon (OTH) radar as part of the Soviet Anti Ballistic Missile early warning system. The Soviet Duga-3 OTH system was located in Chernobyl (now Ukraine). The system was codenamed Steel Yard by Western military intelligence, who apparently managed to photograph the transmitter site during the Cold War (image: view from on top of the gigantic Duga-3 antenna).

Normal radar works line-of-sight, the curvature of the Earth therefore limiting its range to a few hundred kilometers. This was insufficient to provide early warning in case of an attack against the Soviet Union with ICBM's (Intercontinental Ballistic Missiles). OTH radars transmit very powerful signals towards the ionosphere. The ionosphere reflects these signals over very long distances towards the ground. A very small portion is reflected back to the atmosphere and received by the OTH station. Moving objects like ICBM's create a small frequency shift (Doppler effect) in the reflected signals. It requires complex filtering to extract the very weak shifted signals from the backscatter, and its accuracy and resolution are low, but the system works perfectly for a raw early warning.

Noteworthy is that the Duga-3 site is located only 6 miles (10 Km) from the Chernobyl nuclear power plant. According to Vladimir Musiyets, former Commander of the Chernobyl-2, the installation was damaged during the 1986 Chernobyl disaster and never became operational again. Some sources say that the Woodpecker continued broadcasting until 1989. These possibly refer to two other OTH sites.

Another famous mysterious Soviet signal is known under its call-sign UVB-76. The station, nicknamed The Buzzer, started in 1982 with a two-seconds beep tone and switched after a decade of operation to a monotonous 25 buzz tones per minute, every single day, until 2010. The station was extensively observed by radio amateurs (without doubt an equally monotonous job) and only a handful of voice conversations were recorded in its 28 years of operation. Its call-sign UVB-76 was revealed during one of its rare voice conversations. The purpose of The Buzzer remains unknown until today. UVB-76 stopped broadcasting in August 2010 and remains silent since then. The transmitter site is located near Povarovo, 40 Km (25 miles) north-west of Moscow, and now appears abandoned.

Another true Cold War icon are the notorious Numbers stations. The stations broadcast streams of numbers or letters in voice or Morse and are used by intelligence agencies to communicate with their agents, operating abroad. Although the Cold War officially ended, there are still many active numbers stations and new keep popping up! I previously wrote several posts on these spy stations. This weblog query will show them all.

More information on the Soviet Duga-3 OTH system is found on Global Security and Wikipedia. Photo's of the so-called Chernobyl-2 site with its huge antenna's (inside the nuclear exclusion zone) are now available on English Russia, Lost Places (hit "next" at the end of the pages) and Egorka's gallery. If you enter "chernobyl duga-3" in the Google Earth Fly To box, and use the 3D Buildings option, you get a good view of the enormous OTH antenna. More on the Buzzer at Wikipedia. Photo's of the - abandoned - alleged UVB-76 Buzzer site are published on English Russia. More about ELINT on this previous blog post and details on the real Soviet Dead Hand missile launche system on this previous blog.


Friday, November 5, 2010

Code Book Collection

Nick Gessler just published a beautiful collection of old military and civilian code books. He scanned all pages of each book and made them available as pdf files on his website.

The code books are dated between 1878 and 1947. There are several military field codes, Artillery codes, a 1941 Air-Ground Liaison code, but also civilian code books: Telegraph codes, railway codes, cotton trade codes and various merchant and phrase code books, Larabee cipher codes, an Imperial Combination Code, Inter-State cipher and pocket code books.

These are all code books in the true sense of the word code in cryptography: large substitution tables to convert words and phrases into letter groups or digits. Today, such code books would not stand a change against cryptanalysis. However, in the early days of communications they did provide some security and had another important benefit: they could reduced the length of a message considerably. In the 1800's and early 1900's, the often commercial electric telegraph (land lines) were virtually the only way to communicate over long-distance. Reducing the message length was a plus if a telegram was payed per word or per character.

Visit Nick's great Code Book collection and don't forget to check out his main page also, the Cryptology & Steganography Collections with many images of crypto hardware. Most of his code books are also available on the Internet Archive.


Friday, November 12, 2010

U.S Spy Ring Betrayed by Defecting SVR Agent

The sensational case of the ten illegal Russian agents (see previous blog) gets yet another intriguing twist. According to investigative journalists of the Russian newspaper Kommersant, SVR (Russian Foreign Intelligence) Colonel Aleksandr Vasilyevich Shcherbakov blew the cover of the spy ring, before defecting to the United States. It is questioned whether Vasilyevich is the real name of the defector.

Update November 19: Russian intelligence sources (see links below) named Colonel Alexander Poteyev as the double agent who betrayed the spy ring. Poteyev was reportedly deputy director of the SVR's Directorat S that controls the illegal agents in the United States. He is a former KGB ‘Zenith’ Special Forces member who served in Afghanistan. In the 1990's, he was operating undercover in New York where he was recruited by the CIA in return for a financial settlement.

Meanwhile, Russia's Intelligence Services remain silent and the U.S. State Department has no comment. The Kommersant source said that Poteyev is nothing more than a traitor: "We know who he is and how he did it. Money was his only incentive. Make no mistake, we already send a Mercader after him." (ref. Ramon Mercader was the KGB assassin who killed Leon Trotski). According to a Kremlin source, Poteyev's fate is more than unenviable, as he will live in fear for the rest of his life.

Officially, the FBI and other law enforcement agencies busted the spy ring after a many years investigation. As it turns out now, Colonel Poteyev, who worked at the Illegals department, betrayed SVR General Michael Vasenkov (A.K.A. Juan Lazaro), one of the illegal agents in the U.S. spy ring. This started the avalanche of arrests, leading to the expulsion of the ten illegal agents, the biggest spy scandal since the end of the Cold War.

Michael Vasenkov (photo right) started his intelligence career in the 1960's when the KGB's First Chief Directorate PGU (Foreign Intelligence) sent him to Spain. In the 1970's, during a tour in South-America, he obtained Peruvian citizenship as Juan Lazaro, by using a Uruguayan birth certificate of a 1947 deceased boy. In the 1980's, he married the Peruvian journalist Vicky Pealez (one of the also expelled spy ring members) and moved to the United States. This was the start of an impressive deep cover carrier.

Vasenkov assimilated perfectly. He earned a degree in political science and he cultivated highly placed friends among left wing Democrats. He apparently provided the Soviet Union with invaluable information. In the 1980's he received the Hero of the Soviet Union distinction, the highest possible Soviet award, and was recently promoted to General.

After Poteyev's tip-off, Vasenkov was arrested but insisted during the interrogations that his arrest was a mistake. His cover was so perfect that U.S. intelligence had no evidence against this respected 65 year old family man. Many influential American friends and relatives, who had no idea of the truth, backed up his fake identity. He kept denying until Poteyev provided a folder with documents that identified Lazaro as SVR operative Michael Vasenkov. According to Gennady Gudkov, member of the Committee on National Security, "there is indirect evidence that Poteyev was recruited by the Americans several years ago and, thus, he was able to prepare his escape, taking files of our agents and even information he might have obtained from other departments".

It is now clear that both Russia and the United States downplayed the espionage case and resolved it with a swift spy exchange to preserve the reset in relations between the two countries. An unprecedented investigation is now initiated by Russia's law enforcement, including Russia's Federal Intelligence Agency FSB, to find out why Poteyev betrayed the 10 agents and how Russia's intelligence failed to notice the betrayal and could not prevent his defection. Especially the fact that he betrayed a highly respected deep cover agent fell very bad within the intelligence services.

The SVR had no idea and never suspected Colonel Poteyev, not even after he refused a promotion to an even more sensitive post, possibly to evade the required thorough background check a lie detector test. This occured one year before the fall of the spy ring. Poteyev's daughter already lived in the United States and his son, an officer in the federal drug enforcement service Gosnarkokontrol, left Russia for the United States shortly before the spy ring was uncovered. No one within the SVR questioned his behaviour. Poteyev fled to the United States only three days before President Medvedev's visit to the United States. The FBI arrested the illegals soon after Medvedev's return to Moscow.

This again puts the pressure on Mikhail Fradkov, head of the SVR. The embarrassing case fuels the criticism on the segregation of the SVR after the radical reform of the intelligence services in 1991, and supports the proponents of reorganising the SVR back under control of one large intelligence agency, just as the First Chief Directorate was a part of the KGB during the Soviet era.

Meanwhile, Russian President Medvedev said that there was nothing new to the case and that he knew the details about the betrayal from the very start. Indeed, last July, Prime Minister Putin stated during an interview that it was a sell-out and they knew the traitors by name. The ten spies had a tough job and their arrests were not caused by their own mistakes. According to Medvedev's press secretary, the SVR agents received state awards during a Kremlin ceremony last month. As I predicted in my July blog... again, case all but closed.

More about this story on the Russian Kommersant news paper (translation). More about Alexander Poteyev at Interfax Moscow (translation). The case is also followed closely by CI Centre. More details about the spy ring on my blogs Large SVR Spy Ring Arrested in the U.S. and U.S. - Russian Spy Exchange.

More video news from Moscow on this case below and at Russia Today Youtube. As an end note, a more than entertaining view on the 'Mercader' treatment by Bazzel Baz on MNSBC


Friday, November 26, 2010

1983 - The Brink of Apocalypse

One of the most frightening episodes of the Cold War took place in November 1983. It was probably the closest we ever got to a full blown nuclear war between the Unites States and the Soviet Union, even closer than during the 1962 Cuban missile crisis. And it all happened in total secrecy.

In 1983, tensions between Washington and Moscow rose to a dangerous level. The Soviet Union, who had always trailed the United States in the field of technology, finally closed the gap in military power by an immense increase of their nuclear arsenal to more than 11,000 warheads. Soviet leader Yuri Andropov, convinced that the U.S. would attack the USSR sooner or later, was determined to get a strategic advantage. He also initiated operation RYAN (Raketno-Yadernoe Napadenie or Nuclar Missile Attack), a worldwide hunt for information that would indicate an imminent first strike by the United States.

U.S. President Ronald Reagan on the other hand wanted to regain superiority by taking a technological lead. The U.S. also tried to provoke enormous defense expenditures by the USSR to bring them on the verge of bankruptcy. In March 1983, Reagan presented his Strategic Defense Initiative or SDI, also referred to as the Star Wars program. SDI would, once developed and in place, neutralize any Soviet missile that was launched towards the United States. This would render the Soviet strategic arsenal ineffective. Reagan also decided to deploy Pershing II nuclear missiles all across Europe, at the doorstep of the USSR. It was a game of poker with high stakes and it caused a very rapid deterioration of relations between the two powers. In a provocative speech, Reagan called the USSR an Evil Empire.

Two events were the catalyst of a catastrophic chain of events. The first one occurred on September 1, when Korean Air Lines flight 007 deviated from its assigned route and accidentally strayed into Soviet airspace. Soviet Command, convinced that the Boeing 747 was a spy plane, sent four Sukoi and MiG interceptors. Indeed, USSR air space was frequently violated by USAF airplanes that gathered technical intelligence, and the airliner flew over Soviet military installations in the Kuril Islands. The SU-15's were ordered to shoot down the plane. All 269 civilian passengers and crew aboard were killed. The Western world was outraged and condemned the Soviets.

The second event occurred on the night of September 26. Inside a bunker of the Soviet Strategic Rocket Forces near Moscow, Lieutenant colonel Stanislav Petrov resumed his night shift. His bunker was part of an early warning system with satellites, to detect incoming U.S. Intercontinental Ballistic Missiles. Suddenly, their computers detected a missile launch and minutes later gave a missile attack alarm. Eventually, the system reported five missiles. Indoctrinated that any U.S. nuclear strike would be massive, Petrov distrusted the computer reports and ignored the alarm. He could not believe that they would only launch five missiles. He was right and it proved to be a life saving decision. The event was kept secret but the flawed early warning system showed the vulnerability of the Soviets and made them even more nervous.

The seeds for a dangerous chain of events were sown. Then, on November 2, NATO started a large command post exercise, codenamed Able Archer. The exercise was a simulation of a conflict that culminated in a nuclear war. There were no real troop movements involved. It was a communications only exercise with signals troops all across Western Europe, sending coded messages, and lead from a NATO nuclear bunker in Belgium. The scenario included a gradually escalating situation, with communications between heads of states, periods of total radio silence and eventually a DEFCON1 alert, indicating an imminent nuclear attack.

Russian forces intercepted the communications and were puzzled. Their traffic analysis told them there was a huge event going on. NATO used the words Exercise Exercise Exercise on each of their messages. However, after the events one month earlier, the Soviets were convinced that any attack by NATO would start under the disguise of an exercise. The encrypted communications and unexplained radio blackouts (simply pauses in the war game) added to the paranoia of the Russians. Moreover, Soviet intelligence officers abroad were expected to report signs of an imminent attack. Reports that stated otherwise were unacceptable for the KGB leaders and the Kremlin. So the agents, in good KGB bureaucratic tradition, reported non-existing signs.

By November 7, according to the exercise scenario, NATO forces failed to counter a chemical attack and preparations were made to initiate a large nuclear strike. Alarmed by the increased coded communications between NATO countries, the U.K. and the United States, the Soviet Army and Air force initiated a massive war-time deployment of troops in Eastern Europe and their nuclear arsenal was prepared for launch, thumbs ready on the buttons! Their Northern Fleet steamed to the Baltic and nuclear missile submarines disappeared under the sea surface.

On the eve of November 8, NATO command decided to start the nuclear attack. They pushed the big red button, exercise Able Archer was finished and everyone went home. Total silence in the aether. Little were they aware that Soviet command expected the attack to come on a holiday, when the Russians were off-guard, and November 7 was Revolution Day in Russia. When Able Archer ended, all went deadly quiet and the Soviets were ready to counter the attack or initiate a preemptive attack. Fortunately, they kept their nerves together, waited and... nothing happened.

When President Reagan was informed afterwards by intelligence and spies about how scared the Soviets really were, and how U.S. intelligence failed to notice how close they were to a nuclear war, he was shocked and decided to drastically change the relations between the United States and the Soviet Union. He soon started talks with the new Soviet leader, Michail Gorbatsjov. It was the beginning of the end of the Cold War. Being stationed in West Germany, from early 1983 onwards for many years, I'm glad that lessons were learned from that frigtning event. It could have been my and everyone else's last year.

There's a very good and gripping documentary about those extraordinary events in 1983 on the Internet. You can watch the full 74 minutes documentary 1983 - The Brink Of Apocalypse (8 parts) on Youtube (at the end of each part there's a link to the next part). There is an excellent paper on the Wilson Center Cold War Project about Operation RYAN and Able Archer (pdf) and the CIA Center for the Study of Intelligence published a piece on the 1983 Soviet War Scare. Good reading stuff! For an idea of how a nuclear war looks like, watch The Day After (1983), the movie that scared Ronald Reagan like hell. I can recommend General John Hacket's book The Third World War, August 1985 (see Amazon) about how a war in Europe would look like if they bring tactical nukes on the war theatre. It's a fictionalized but very accurate scenario.

More information on how the Soviets perceived the U.S. nuclear threat is found on my previous blog on U.S. Strategic Intelligence on the USSR. Read also 3 Seconds from Word War 3. On my Silent Warriors blog you can ready about the risks of U.S. spy missions above the USSR.


Saturday, December 4, 2010

KGB Operations in the U.S.

The Soviet Committee for State Security KGB (Komitet gosudarstvennoy bezopasnosti) ran numerous intelligence operations in foreign countries during the 20th century. Its First Chief Directorate PGU (Pervoye Glavnoye Upravleniye), responsible for foreign intelligence and espionage, stationed many agents, often under diplomatic cover, in embassies and trade mission all over the world, and also used illegal agents under false identities. The PGU's main target was of course the United States.

In 1991, the KGB was dissolved and divided into several different organisations. The most important parts are now know as the Russian Federal Security Service FSB (Federal'naya sluzhba bezopasnosti), the Foreign Intelligence Service SVR (Sluzhba Vneshney Razvedki) and the Federal Agency of Government Communications and Information FAPSI (Federal'naya Agenstvo Pravitel'stvennoy Svayazi i Informatsii). Despite the reorganisation and new names, they still can't leave their old habits, as you can read in my post on the large SVR spy ring in the U.S.

There's an interesting 130 minutes documentary about KGB operations in the United States in the 20th century on Youtube. You can view the complete 1981 documentary (in black & White) here, or watch five separate parts (in color) via the links below the video.



See also part 1, part 2, part 3, part 4, part 5 (in color)


Friday, December 17, 2010

Callimahos and the Dundee Jar

There's a curious story on how a marmalade jar became a symbole of cryptanalytic skills within the National Security Agency (NSA). It all began in the late 1950's, when Lambros Demetrios Callimahos created the Intensive Study Program in General Cryptanalysis (ISPGC), also known as the CA-400 course.

It was the first extensive high-level course for experienced and senior cryptanalysts. Callimahos based his course on William Friedman's manual on Military Cryptanalysis. He revised and expanded Friedman's work into the new training manuals Military Cryptanalytics I and II and molded it into an extremely demanding course, unequaled in wide range of subjects and in dept.

The students rushed trough the Military Cryptanalytics manuals to continue with exercises in cryptanalysis of codes, ciphers, cipher machines and traffic analysis. While solving their crypto problems, they were assisted by aids who helped them to speed up their paper work. By doing so, Callimahos managed to reduce a most complex course from 12 to 4 month. Clearly not a course for wannabees that were still wet in the pants!

He composed many new examples and problems that the students had to solve. At the end of each course, the students had to solve the notorious Zendian Problem. The students received 375 encrypted military messages, intercepted from the fictional third world country Zendia. The messages were encrypted with various manual systems and cipher machines. Within two weeks, they had to break all exploitable message. It was the perfect opportunity to merge all their skills into one single fictional yet most difficult codebreaking operation. The exercise prepared them perfectly to tackle the real stuff.

The course was also the start of a tradition of gatherings for the graduates at a local restaurant. While making the reservation for a diner, Callimahos faced the problem that he could not disclose the real - secret - purpose of the group. He quickly devised the name Dundee Society by looking at a marmalade jar that served as a pencil holder at the CA-400 course. The Dundee Society was born! Since then, every graduate received a Dundee jar, which became a symbol of a truly extraordinary course for elite cryptanalysts. In 1977, Lambros Callimahos died much too soon, at the age of 66.

You can read the story of the Callimahos course (pdf) on the NSA website. More on the Cryptologic Almanac, as part 1 and part 2. In 2003, Callimahos was inducted in the NSA's Hall of Honor.

William Friedman's Military Cryptanalysis is found as part I, part II, Part III and Part IV (pdf's) at the NSA website.



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