Monday, July 22, 2024

#2 1994 Russian hackers attacked Citibank in the U.S.

#2 1994 Russian hackers attacked Citibank in the U.S.
I would like to talk about the "internationalization of cybercrime." There was a Westphalian system. This was the existence of national sovereign states in Europe, with borders, and because of the Westphalian system, borders, armies, and defenses were maintained. There is also the issue of immigration in the United States, but this is about borders in physical space. The Treaty of Westphalia is new and there are no borders when it comes to cybercrime.

As for the beginning of cybercrime, the Times Square Bank in New York was hacked in 1994. Vladimir Levin of Russia hacked and withdrew $10.7 million. The withdrawn deposits were transferred to Finland, the United States, the Netherlands, Germany, and Israel. This is difficult for the U.S. police to handle alone and requires an international police force like Interpol, but it is a costly and demanding problem.

Vladimir Levin had never physically entered the US, there were no fingerprints or DNA, and his IP address was the only clue. This was also related to the US election campaign, in which Russian hackers broke into Kleinton's server. Russia interfered with the U.S. election, but since they did not enter the country, it is difficult to deal with.

International criminal organizations are also a problem. For example, the North Korean "Hidden Cobra" group uses servers distributed in eastern countries. The attackers are becoming more internationalized, but the defenders are often dealing with the Westphalian system. In a French attack on a Brazilian bank, Brazil can request France, but has no authority to investigate within France. The threat has become internationalized, but the response is still tied to the nation-state framework.

We do not know what will happen in the future, but one example is the case of Russian hackers who stole $10 million from Citibank in the US and transferred the money to several countries. It is unclear whether the Westphalian regime still exists today, but it is about the asymmetry of internationalization between attackers and defenders.

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