London Daily

Focus on the big picture.
Wednesday, Jan 14, 2026

US Spent Billions On System To Detect Hacks. The Russians Outsmarted It.

US Spent Billions On System To Detect Hacks. The Russians Outsmarted It.

The Russians, whose operation was discovered this month by a cybersecurity firm that they hacked, were good.
When Russian hackers first slipped their digital Trojan horses into federal government computer systems, probably in the spring, they sat dormant for days, doing nothing but hiding. Then the malicious code sprang into action and began communicating with the outside world.

At that moment - when the Russian malware began sending transmissions from federal servers to command-and-control computers operated by the hackers - an opportunity for detection arose, much as human spies behind enemy lines are particularly vulnerable when they radio home to report what they've found.

Why, then, when computer networks at the State Department and other federal agencies started signaling to Russian servers, did nobody in the U.S. government notice that something odd was afoot?

The answer is part Russian skill, part federal government blind spot.

The Russians, whose operation was discovered this month by a cybersecurity firm that they hacked, were good. After initiating the hacks by corrupting patches of widely used network monitoring software, the hackers hid well, wiped away their tracks and communicated through IP addresses in the United States rather than ones in, say, Moscow, to minimize suspicions.

The hackers also used novel bits of malicious code that apparently evaded the U.S. government's multibillion-dollar detection system, Einstein, which focuses on finding new uses of known malware and detecting connections to parts of the Internet used in previous hacks.

But Einstein, operated by the Department of Homeland Security (DHS), was not equipped to find novel malware or Internet connections, despite a 2018 report from the Government Accountability Office suggesting that building such capability might be a wise investment. Some private cybersecurity firms do this type of "hunting" for suspicious communications - maybe an IP address to which a server has never before connected - but Einstein does not.

"It's fair to say that Einstein wasn't designed properly," said Thomas Bossert, a top cybersecurity official in both the George W. Bush and Trump administrations. "But that's a management failure."

The DHS did not respond to a request for comment.

Russia has denied involvement in the intrusions.

The federal government has invested heavily in securing its myriad computers, especially since the extent of the devastating Chinese hack of the Office of Personnel Management was discovered in 2015, when more than 20 million federal employees and others had their personal information, including Social Security numbers, compromised.

But this year's months-long hack of federal networks, discovered in recent days, has revealed new weaknesses and underscored some previously known ones, including the federal government's reliance on widely used commercial software that provides potential attack vectors for nation-state hackers.

The Russians reportedly found their way into federal systems by first hacking SolarWinds, a Texas-based maker of network-monitoring software, and then slipped the malware into automatic updates that network administrators, in the federal government and elsewhere, routinely install to keep their systems current. The company reported that nearly 18,000 of its customers may have been affected worldwide.

More broadly, the hack highlighted the struggles of the government's network-monitoring systems to detect threats delivered through newly written malicious code communicating to servers not previously affiliated with known cyberattacks. This is something advanced nation-state hackers, including from Russia, sometimes do - presumably because it makes intrusions harder to detect.

The full scope of the hack remains unknown, though it's clear that a growing number of agencies have been penetrated, including the departments of State, Treasury, Homeland Security and Commerce and the National Institutes of Health. They are among victims that include consulting, technology, telecom, and oil and gas companies in North America, Europe, Asia and the Middle East.

The Pentagon was assessing Tuesday whether there had been intrusions at the sprawling department and what impact they may have had, a spokesman said.

The FBI and Department of Homeland Security are investigating the scope and nature of the breaches, which intelligence officials say were carried out by the Russian Foreign Intelligence Service, the SVR. The U.S. government has not publicly attributed the hacks to anyone.

Emails were one target of the hackers, officials said. Although it's not yet clear what the Russians may be intending to do with the information, their victims, including a variety of State Department bureaus, suggest a range of motives.

At the State Department, they may want to know what policymakers' plans are with respect to regions and issues that affect Russia's strategic interests. At the Treasury, they may have sought insights into potential Russian targets of U.S. sanctions. At the National Institutes of Health (NIH), they may be interested in information related to coronavirus vaccine research.

As the investigative work continues, some lawmakers are focused on probing why and how federal cybersecurity efforts have fallen short despite years of damaging hacks by Russian and Chinese spies and major federal investments in defensive technologies.

Einstein, which was developed by the DHS and is operated by the department's Cybersecurity and Infrastructure Security Agency (CISA), was made to be a backbone of federal protection of civilian agency computers, but the 2018 GAO report found significant weaknesses.

The capability to "identify any anomalies that may indicate a cybersecurity compromise" was planned for deployment by 2022, the report said. It also said network monitoring by individual agencies is spotty. Of 23 federal agencies surveyed, five "were not monitoring inbound or outbound direct connections to outside entities," and 11 "were not persistently monitoring inbound encrypted traffic." Eight "were not persistently monitoring outbound encrypted traffic."

"DHS spent billions of taxpayer dollars on cyber defenses and all it got in return was a lemon with a catchy name," said Sen. Ron Wyden, D-Ore., a member of the Senate Intelligence Committee. "Despite warnings by government watchdogs, this administration failed to promptly deploy technology necessary to identify suspicious traffic and catch hackers using new tools and new servers."

It was not just this administration.

Bossert, who worked on the original Einstein concept in the George W. Bush administration, said the idea was to place active sensors at an agency's Internet gateway that could recognize and neutralize malicious command-and-control traffic. "But the Bush, Obama and Trump administrations," he said, "never designed Einstein to meet its full potential."

CISA officials told congressional staff on a Monday evening call that the system did not have the capacity to flag the malware that was signaling back to its Russian masters.

The officials said federal agencies had not given CISA the information necessary to identify agency servers that should not be communicating with the outside world, said one congressional aide, who spoke on the condition of anonymity to discuss a sensitive matter.

"To CISA, all internal agency computers look the same, and so Einstein only flags samples of known malware or connections to 'known bad' IP addresses," the aide said.

Other cybersecurity experts say the breaches highlight the "desperate" need for a government board that can conduct a deep investigation of an incident such as SolarWind's, whose corrupted patches enabled the compromises - and crucially, make the report public.

"We need people to read the report, and say, 'Oh, wow, we need to secure our [information technology] pipeline,' " said Alex Stamos, head of the Stanford Internet Observatory, a research group. He previously was chief security officer at Facebook and Yahoo.

He said there are "hundreds or thousands of companies" in this space that may have security flaws without knowing. These firms do network monitoring, IT management and log aggregation. "Enterprise IT is a $2 trillion market," Stamos said. "There's no agency in charge of ensuring its security."
Newsletter

Related Articles

0:00
0:00
Close
UK Intensifies Arctic Security Engagement as Trump’s Greenland Rhetoric Fuels Allied Concern
Meghan Markle Could Return to the UK for the First Time in Nearly Four Years If Security Is Secured
Meghan Markle Likely to Return to UK Only if Harry Secures Official Security Cover
UAE Restricts Funding for Emiratis to Study in UK Amid Fears Over Muslim Brotherhood Influence
EU Seeks ‘Farage Clause’ in Brexit Reset Talks to Safeguard Long-Term Agreement Stability
Starmer’s Push to Rally Support for Action Against Elon Musk’s X Faces Setback as Canada Shuns Ban
UK Free School Meals Expansion Faces Political and Budgetary Delays
EU Seeks ‘Farage Clause’ in Brexit Reset Talks With Britain
Germany Hit by Major Airport Strikes Disrupting European Travel
Prince Harry Seeks King Charles’ Support to Open Invictus Games on UK Return
Washington Holds Back as Britain and France Signal Willingness to Deploy Troops in Postwar Ukraine
Elon Musk Accuses UK Government of Suppressing Free Speech as X Faces Potential Ban Over AI-Generated Content
Russia Deploys Hypersonic Missile in Strike on Ukraine
OpenAI and SoftBank Commit One Billion Dollars to Energy and Data Centre Supplier
UK Prime Minister Starmer Reaffirms Support for Danish Sovereignty Over Greenland Amid U.S. Pressure
UK Support Bolsters U.S. Seizure of Russian-Flagged Tanker Marinera in Atlantic Strike on Sanctions Evasion
The Claim That Maduro’s Capture and Trial Violate International Law Is Either Legally Illiterate—or Deliberately Deceptive
UK Data Watchdog Probes Elon Musk’s X Over AI-Generated Grok Images Amid Surge in Non-Consensual Outputs
Prince Harry to Return to UK for Court Hearing Without Plans to Meet King Charles III
UK Confirms Support for US Seizure of Russian-Flagged Oil Tanker in North Atlantic
Béla Tarr, Visionary Hungarian Filmmaker, Dies at Seventy After Long Illness
UK and France Pledge Military Hubs Across Ukraine in Post-Ceasefire Security Plan
Prince Harry Poised to Regain UK Security Cover, Clearing Way for Family Visits
UK Junk Food Advertising Ban Faces Major Loophole Allowing Brand-Only Promotions
Maduro’s Arrest Without The Hague Tests International Law—and Trump’s Willingness to Break It
German Intelligence Secretly Intercepted Obama’s Air Force One Communications
The U.S. State Department’s account in Persian: “President Trump is a man of action. If you didn’t know it until now, now you do—do not play games with President Trump.”
Fake Mainstream Media Double Standard: Elon Musk Versus Mamdani
HSBC Leads 2026 Mortgage Rate Cuts as UK Lending Costs Ease
US Joint Chiefs Chairman Outlines How Operation Absolute Resolve Was Carried Out in Venezuela
Starmer Welcomes End of Maduro Era While Stressing International Law and UK Non-Involvement
Korean Beauty Turns Viral Skincare Into a Global Export Engine
UK Confirms Non-Involvement in U.S. Military Action Against Venezuela
UK Terror Watchdog Calls for Australian-Style Social Media Ban to Protect Teenagers
Iranian Protests Intensify as Another Revolutionary Guard Member Is Killed and Khamenei Blames the West
Delta Force Identified as Unit Behind U.S. Operation That Captured Venezuela’s President
Europe’s Luxury Sanctions Punish Russian Consumers While a Sanctions-Circumvention Industry Thrives
Berkshire’s Buffett-to-Abel Transition Tests Whether a One-Man Trust Model Can Survive as a System
Fraud in European Central Bank: Lagarde’s Hidden Pay Premium Exposes a Transparency Crisis at the European Central Bank
Trump Announces U.S. Large-Scale Strike on Venezuela, Declares President Maduro and Wife Captured
Tesla Loses EV Crown to China’s BYD After Annual Deliveries Decline in 2025
UK Manufacturing Growth Reaches 15-Month Peak as Output and Orders Improve in December
Beijing Threatened to Scrap UK–China Trade Talks After British Minister’s Taiwan Visit
Newly Released Files Reveal Tony Blair Pressured Officials Over Iraq Death Case Involving UK Soldiers
Top Stocks and Themes to Watch in 2026 as Markets Enter New Year with Fresh Momentum
No UK Curfew Ordered as Deepfake TikTok Falsely Attributes Decree to Prime Minister Starmer
Europe’s Largest Defence Groups Set to Return Nearly Five Billion Dollars to Shareholders in Twenty Twenty-Five
Abu Dhabi ‘Capital of Capital’: How Abu Dhabi Rose as a Sovereign Wealth Power
Diamonds Are Powering a New Quantum Revolution
Trump Threatens Strikes Against Iran if Nuclear Programme Is Restarted
×