U.S. Treasury breached by Russian hackers…

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Treasury, Commerce Departments breached

WASHINGTON (Reuters) – Hackers believed to be working for Russia have been monitoring internal email traffic at the U.S. Treasury Department and an agency that decides internet and telecommunications policy, according to people familiar with the matter.

There is concern within the U.S. intelligence community that the hackers who targeted Treasury and the Commerce Department’s National Telecommunications and Information Administration used a similar tool to break into other government agencies, according to four people briefed on the matter.

The people did not say which other agencies, but late Sunday Austin, Texas-based IT company SolarWinds said software updates it released in March and June of this year may have been surreptitiously tampered with in a “highly-sophisticated, targeted and manual supply chain attack by a nation state.”

SolarWinds stopped short of saying the hack at Treasury occurred via them, but two of the people familiar with the investigation said the company was believed to be the channel by which the hackers got in.

SolarWinds says on its website that its customers inlcude most of America’s Fortune 500 companies, all top ten U.S. telecommunications providers, all five branches of the U.S. military, the State Department, the National Security Agency, and the Office of President of the United States.

Three of the people familiar with the investigation said Russia is currently believed to be behind the attack.

Two of the people said that the breaches are connected to a broad campaign that also involved the recently disclosed hack on FireEye, a major U.S. cybersecurity company with government and commercial contracts.

“The United States government is aware of these reports and we are taking all necessary steps to identify and remedy any possible issues related to this situation,” said National Security Council spokesman John Ullyot.

The hack is so serious it led to a National Security Council meeting at the White House on Saturday.

“This is a much bigger story than one single agency,” said one of the people familiar with the matter. “This is a huge cyber espionage campaign targeting the U.S. government and its interests.”

Hackers broke into the NTIA’s office software, Microsoft’s Office 365. Staff emails at the agency were monitored by the hackers for months, sources said.

The hackers are “highly sophisticated” and have been able to trick the Microsoft platform’s authentication controls, according to a person familiar with the incident, who spoke on condition of anonymity because they were not allowed to speak to the press.

“This is a nation state,” said a different person briefed on the matter.

The full scope of the breach is unclear. The investigation is still its early stages and involves a range of federal agencies, including the FBI, according to three of the people familiar with the matter.

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