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THE DAILY HERALD, Thursday, March 16, 2017 Business 33

WA SHING TON--The sia’s Federal Security Service it said.
United States on Wednes- (FSB) is the successor to the Yahoo had previously said
day charged two Russian KGB. about 32 million accounts
intelligence agents and two Yahoo said when it an- had fallen victim to the deep-
criminal hackers with mas- nounced the then-unprece- er attack, which it said lever-
terminding the 2014 theft of dented breach last Septem- aged forged browser cookies
500 million Yahoo accounts, ber that it believed the attack to access accounts without
marking the first time the was state-sponsored, and on the need for a password.
U.S. government has crimi- Wednesday the company According to the indict-
nally charged Russian spies said the indictment “un- ment, FSB officers Sushchin
for cyber offenses. equivocally shows” that to be and Dokuchaev also directed
The charges came amid the case. Baratov to use the informa-
a swirl of controversies re- The charges announced tion gained in the Yahoo
lating to alleged Kremlin- Wednesday are not related breach to hack specific tar-
backed hacking of the 2016 to the hacking of Democratic gets who possessed email
U.S. presidential election Party emails during the 2016 accounts with other service
and possible links between U.S. presidential election. providers, including Google.
Russian figures and associ- U.S. intelligence agencies When Baratov was success-
ates of U.S. President Don- have said they were carried ful, Dokuchaev would re-
ald Trump, and uncertainty out by Russian spy services, ward him with a bounty, the
about whether Trump is will- including the FSB, to help indictment charged.
ing to respond forcefully to the campaign of Republican Examples where Google
aggression from Moscow in candidate Donald Trump. A poster of suspected Russian hackers is seen before FBI National Security Division and accounts were targeted in-
cyberspace and elsewhere. The indictment named the U.S. Attorney’s Office for the Northern District of California joint news conference at the clude an assistant to the dep-
The 47-count Justice De- the FSB officers involved Justice Department in Washington, U.S., on Wednesday. uty chairman of the Russian
partment indictment in- as Dmitry Dokuchaev and Federation, an officer of the
cludes charges of conspiracy, his superior, Igor Sushchin, also named in the indict- Washington has not contact- FBI’s San Francisco Divi- Russian Ministry of Internal
computer fraud and abuse, who are both in Russia. Do- ment. The Justice Depart- ed Moscow over the charges, sion said the 2013 breach is Affairs, and a physical train-
economic espionage, theft of kuchaev was arrested for ment said Baratov was ar- Russian news agencies re- unrelated and that an inves- ing expert employed by the
trade secrets, wire fraud, ac- treason in December, ac- rested in Canada on Tuesday. ported on Wednesday, citing tigation of that incident is Russian government. Details
cess device fraud and aggra- cording to the Russian news Mark Pugash of Toronto po- a “highly placed” source in ongoing. in the indictment reflect the
vated identify theft. It paints agency Interfax. lice later confirmed the Tues- Moscow. The administration The hacks forced Yahoo often murky relationship
a picture of the Russian se- Reuters sent a request for day arrest. of former President Barack to accept a discount of $350 in Russia between criminal
curity services working hand- comment to the FSB in Mos- McCord said the hacking Obama brought similar million in what had been a hackers and government in-
in-hand with cyber criminals, cow on Wednesday evening campaign was waged by the charges against Chinese and $4.83 billion deal to sell its telligence officers.
who helped spies further but there was no immediate FSB to collect intelligence Iranian hackers who have main assets to Verizon Com- Interpol issued a “red no-
their intelligence goals in response. but that the two hackers used not been extradited. munications Inc. tice” on Belan in relation to
exchange for using the same The alleged criminals in- the collected information as In a statement, White At least 30 million of the an earlier hacking campaign,
exploits to make money. volved in the scheme include an opportunity to “line their House spokesman Michael Yahoo accounts in the 2014 according to the indictment.
“The criminal conduct at Alexsey Belan, who is among pockets.” Anton said the charges “are breach were the most seri- Instead of arresting Belan,
issue, carried out and oth- the FBI’s most-wanted cyber The United States does not part of a broad effort across ously affected, with Belan however, the FSB recruited
erwise facilitated by officers criminals and was arrested have an extradition treaty the government to defend able to burrow deep into him to help with cyber espio-
from an FSB unit that serves in Europe in June 2013 but with Russia, but McCord the United States against cy- their accounts and take user nage and provided tools to
as the FBI’s point of contact escaped to Russia before he said she was hopeful Russian ber attacks and cyber-related contact lists that were later evade detection from other
in Moscow on cyber crime could be extradited to the authorities would cooperate crimes.” used for a financially moti- authorities.
matters, is beyond the pale,” United States, according to in bringing criminals to jus- Yahoo in December an- vated spam campaign, ac- Belan later gained unau-
Acting Assistant Attorney the Justice Department. tice. The United States often nounced another breach that cording to the indictment. thorized access to Yahoo’s
General Mary McCord said Karim Baratov, who was charges cyber criminals with occurred in 2013 affecting Belan also stole financial network that he shared with
at a press conference an- born in Kazakhstan but has the intent of deterring future one billion accounts. Special information such as credit FSB, the indictment said.
nouncing the charges. Rus- Canadian citizenship, was state-sponsored activity. Agent Jack Bennett of the card numbers and gift cards,

SHANGHAI--China’s an- The two-hour show - a mix with the government regula-
nual consumer rights day TV of undercover reports and tors regarding their inqui-
show turned its spotlight on song-and-dance - also high- ries,” the company said. The
U.S. sports brand Nike Inc lighted Japanese brands in- Greater China region ac-
for misleading advertising cluding Muji, owned by Ryo- counts for over 10 percent of
and Japanese brand Muji hin Keikaku Co, which it said Nike’s global sales.
for selling food products al- sold food products in China The show also took aim at
legedly sourced from part of from an area of Tokyo where fake eye doctors for scam-
Japan affected by radiation. high levels of radiation were ming patients, animal breed-
The state-run China Cen- detected in 2015. A Ryohin ers for over-using medicines
tral Television (CCTV) show Keikaku spokesman said on to make animals grow faster,
- which can have brands and Thursday the firm was “not and China’s Wikipedia-like
their corporate PR teams selling any food products in Baike.com.
scurrying to take evasive ac- China from areas banned The 315 show can hit a
tion - said Nike had misled from exporting due to con- firm’s reputation if singled
consumers over high-tech air cerns about radioactive con- out for bad corporate behav- Nike shoes are seen in a shop in Rome, Italy, March 30, 2016.
cushions in some of its “Hy- tamination”. iour. Apple was forced into
perdunk” basketball shoes. Nike said in a statement it a rare apology in 2013 after based CEO of independent dodgy false teeth, but didn’t and any impact would likely
Similar to CBS network’s had sold 300 pairs of Hyper- criticism on the show of its China consumer watchdog take aim at any major in- be short-lived.
“60 Minutes” in the United dunk shoes in China last year China after-sales service. Mingjian. ternational firms. However, “This year’s show was a
States, the CCTV show - with “an inaccurate product “Pretty much all the big While the annual pro- many in China steered clear laughing stock, there weren’t
known as “315” in reference description stating that the corporations have their PR gramme has lost some of its of the show altogether, while any really big cases in there,”
to global consumer rights day shoe contained airbags.” The machines ready to jump into bite in recent years, Wednes- online chatter was more mut- posted one user on Sina We-
on March 15 - has previously firm added it had apologised action because they’ve seen day’s version was harder hit- ed than in previous years. ibo using the name Master
named and shamed firms to consumers and offered what happens when compa- ting than last year’s, which Viewers who tuned in said Tan Xi. “Why do they bother
from Apple Inc to Volkswa- compensation. nies are not prepared,” said criticised local food delivery they were underwhelmed by still holding it?”
gen AG. “We will fully cooperate James Feldkamp, Shanghai- apps, fake online sales and the show’s corporate exposés