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HACKERS AT CENTER OF SPRAWLING SPY CAMPAIGN TURNED SOLARWINDS’ DOMINANCE AGAINST
IT

Raphael Satter/Reuters, Christopher Bing/Reuters

Updated: Dec 15, 2020 / 02:57 PM CST


(Photo by NICOLAS ASFOURI/AFP via Getty Images)

WASHINGTON (Reuters) — On an earnings call two months ago, SolarWinds Chief
Executive Kevin Thompson touted how far the company had gone during his 11 years
at the helm.

There was not a database or an IT deployment model out there to which his
Austin, Texas-based company did not provide some level of monitoring or
management, he told analysts on the Oct. 27 call.

“We don’t think anyone else in the market is really even close in terms of the
breadth of coverage we have,” he said. “We manage everyone’s network gear.”


U.S. cybersecurity firm FireEye discloses breach, theft of internal hacking
tools

Now that dominance has become a liability – an example of how the workhorse
software that helps glue organizations together can turn toxic when it is
subverted by sophisticated hackers.

On Monday, SolarWinds confirmed that Orion – its flagship network management
software – had served as the unwitting conduit for a sprawling international
cyberespionage operation. The hackers inserted malicious code into Orion
software updates pushed out to nearly 18,000 customers.

While the number of affected organizations is thought to be much more modest,
the hackers have already parlayed their access into consequential breaches at
the U.S. Treasury and Department of Commerce.



Experts are reviewing their notes to find old examples of substandard security
at the company. Security researcher Vinoth Kumar told Reuters that, last year,
he alerted the company that anyone could access SolarWinds’ update server by
using the password “solarwinds123.”

“This could have been done by any attacker, easily,” Kumar said.

Hackers spied on US Treasury emails for a foreign government

Others – including Kyle Hanslovan, the cofounder of Maryland-based cybersecurity
company Huntress – noticed that even days after SolarWinds realized their
software had been compromised, the malicious updates were still available for
download.

Three people familiar with the investigation have told Reuters that Russia is a
top suspect, although others familiar with the inquiry have said it is still too
early to tell.



Ryan Toohey, a SolarWinds representative, said he would not be making executives
available for comment and did not immediately respond to questions sent by
email.

Cybersecurity experts across government and private industry are still
struggling to understand the scope of the damage, which some are already calling
one of the most consequential breaches in recent memory.

The malicious updates – sent between March and June, when America was hunkering
down to weather the first wave of coronavirus infections – was “perfect timing
for a perfect storm,” said Kim Peretti, who co-chairs Atlanta-based law firm
Alston & Bird’s cybersecurity preparedness and response team.

Peretti said that the length of the compromise and the sophistication of the
hackers meant much of the data theft would likely go undetected for a long time.



“We may not know the true impact for many months, if not more – if not ever,”
she said.



The impact on SolarWinds was more immediate. U.S. officials ordered anyone
running Orion to immediately disconnect it. The company’s stock has tumbled more
than 22% from $23.50 on Friday – before Reuters broke the news of the breach –
to $18.20 on Tuesday morning.

The extra scrutiny comes at a time of transition for the company, which on Dec.
9 announced that Thompson would be replaced next year by Sudhakar Ramakrishna,
the former chief executive of Pulse Secure. Three weeks ago SolarWinds posted a
job ad seeking a new vice president for security; the position is still listed
as open.

Thompson and Ramakrishna could not immediately be reached.




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