June 06, 2007

Estonia asks Russia for help in finding cyber-criminals

As you may recall, Estonia was besieged by cyber attacks against government, media, educational and private sites last month. It seemed to be a direct, malicious response from the Kremlin who objected to the Estonian relocation of a Russian military memorial statue's relocation. The result was an assault that disrupted Estonian government, media, education and private sector sites.

The cyber trail went directly back to Russia, where Kremlin officials adamantly denied any government involvement. Now, Reuters is reporting that Estonian Prime Minister Andres Ansip is asking Russia for help in tracking down the culprits.

"It is clear this is criminal activity. I hope Russia will co-operate," Ansip told a news conference in Helsinki yesterday.

Fat chance, and I'm pretty sure Ansip knows it as well.  Russia, for some reason, has adopted the posture of a schoolyard bully against both it's immediate neighbors as well as the West in general.

But for the head of a country of 1.2 million, located in the shadow of a moody, powerful, dangerous neighbor to show such attitude is a ballsy move indeed and I for one admire it



May 21, 2007

Russia's virtual warfare & why we should worry

Here we are, just a few years into the new Millennium and already we have discovered there are two new kinds of warfare.

First, is the one that is so visually horrific.  It is the one being waged by Al Qaeda against anyone who is not Al Qaeda. This is a war of terror and everyone gets it instantly. It is marked by towering infernos, rubble and dead bodies.  It has the drama of walls of flame and the mutilation of innocent civilians. Everyone sees it and gets it and understands why the world would be a better place if we could figure out how to bring it to an end.

Second and more recently, is a much less dramatic assault as the International Herald Tribune points out, Russia has the become the first nation to use cyber assaults on another nation. It's three waves of cyber attacks on little Estonia can hardly be called horrific. But, as the Herald Tribune points, out, they are acts of a new kind of "virtual War, one in which there can be real victims.  While, there are no walls of flames and only one dead body so far, we have just entered a new era defined by a new danger. Even my Estonian friends consider what has happened so far to be merely inconvenient. Business and e-government are slowed. The tiny country is small enough that it can cut off international internet communications and survive without  irretrievable losses. For those reasons, most people in the US and most of the West frown at  what has happened, but they are not terribly alarmed.  Even inside Estonia, life goes on pretty much as it did before the cyber attacks.

But, if you think about it, this latter form of assault could be as devastating as more dramatic acts of terror. Russia has a 100-year history filled with incidents of it bullying smaller neighbors as well as its own dissident citizens. Estonia well remembers that the Russians can be marsh harsher than what has happened so far.

But we all need to remember that weapons of warfare always begin as primitive things. The first three cyber assaults launched by one country against another are probably the most primitive that the world will experience. Now that it has been done with some success bad guys, like Russia are likely to get a lot better at it and the targets of such assaults are likely to  get a lot bigger and be located a lot further in the west.

Estonia can protect its banks and e-government and law enforcement facilities just by shutting down external access for a while. What would happen if such an attack were launched on the United States.  If this country shuts down its cyber borders then world trade ges most seriously hampered.

But again, cyber attacks are new and primitive from what they will become.  If you let your imagination wander for just a bit, you can see a very frightening scenario unfolding. Picture the shuffling of personal, medical and financial data records exonerating criminals and tainting citizens above suspicion.  Picture the corruption of IRS data, the mixing of hospital prescriptions between patients, the calling up of police and fire resources, the destruction of email and so on.

None of this can be accomplished today.  It will take some time and work. But it's a good guess that right now, the bad guys are on the case, while governments are scratching their headson what to do about this and most people are not considering for the most part, that Russia's little assault on Esnia has actually made the world a much more dangerous place than it already was.





May 10, 2007

Loic Reflects on his recent saga

Loic le Geek
[Loic, the geek, shortly before Les Blogs 2. Photo by Shel]

Loic has posted a reflective and revealing piece about his role in the recent Sarkovsky French presidential campaign. He just tried to show the power of social media in a place where I think it will ultimately become more important than even in business.  He did not fully succeed, but ca va, so it goes,as the French say.

What I found the most interesting is his recounting of the events that led up to his controversial decision to insert two French presidential candidates into the roster for Les Web 3 and his admitting calmly that he should have asked and listen to attendees more closely.

As many of you will recall, he was heavily criticized at the time and discussion over it topped all the conversational charts for a while.  I was among those who criticized Loic at the time and that was hard for me.

Loic has been very kind to me.  He spent hours educating me on Europe for Naked Conversations.  He suffered my aggressive campaign to share the Les Blogs 2 stage with Scoble and the session is hardly recalled among the great moments in conference presentations. I also took him on at Les Blogs 2, for allowing projecting background chat behind speakers on stage.

But Loic is sounding older and wiser now as he turns attention to the next startup in his sequence.  And he vows to produce a fourth conference next year.

I wish him well in both.

May 06, 2007

Russia's Cyber Assault on little Estonia

IMG_0784
[Former Estonian KGB Headquarters. They cemented over the basement windows, so you couldn't hear the shrieks when you walked by. Photo by Shel ]

You could not miss the statue if you were in Estonia.During my brief visit, the bronze monument to a Red Army soldier, erected by occupying Russians in 1947 seems to be where all roads passed by. The Russians said it was to memorialize Russia's liberation of estonia from the Nazis.  The Estonians saw it as the symbol of 50 years of recent Soviet oppression and seeing as it is now their country, they decided to move it to a less conspicuous locale.

They were, perhaps, insensitive in how they handled it, moving it abruptly at night, thus pissing off not just the considerable Russian population in Estonia but the Russian government as well. Now, all Hell has broken out, with riots and military threats and the Estnian Embassy in Russia under siege.

Pretty much ignored in the US, the incident and resulting escalations has been big news in parts of Europe and the lead story in Russia three days running. There has been talk of reigniting the Cold War because Estonia, the smallest and most technologically advanced of the former Soviet Bloc, is a NATO ally and the US is bound to defend allies against attack if it should ever come to that.

While tanks are not imminently running across any borders just yet, Russia has most decidedly been attempting to intimidate, frustrate and incapacitate its tiny neighbor. Perhaps the most effective ofi ts arsenal has been cyber-hacking, which for brief periods last week cut off online communications inside and outside the Estonian government and denied the rest of the world access to much of Estonia online.

Tim Watson's Dark Reading reported many government sites including Parliament, the office of the prime minister and even the police department were unreachable online for several days "after hackers launched denial-of-service attacks that rendered many of their sites useless."

It turns out those hackers were working on Russian government computers.

Estonia's Justice Minister Rein Lang followed the IP addresses to Moscow, where he ascertained the smoking cyberguns were in official Kremlin hands, the independent Baltic News Service [BNS] reported. The BNS also said there had been malicious attempts to bring down Estonia's data communications network, which would cut off exchanges between state institutions and agencies. Estonia was fairly quick in restoring its sites, but to defend itself, it had to temporarily cut off foreign access to all Estonian sites, turning itself into digital island.

Russians also attempted multiple assaults on private sites as well, including Delfi, Estonia's leading web portal. Rate.ee, an Estonian social network site doing business in Russia reported that public speaking invitations at Russian events had been abruptly withdrawn.

Using cyber assaults against Estonia could be devastating. Some 95 percent of the country enjoys free and ubiquitous access. When the Soviet Empire finally released Estonia from under its yoke in 1993, Estonia had virtually no legacy commerce to speak of, so it began building an infrastructure from scratch, focusing efforts on what was the newest way to do business--the Internet. Today, Estonia is among world leaders in internet data encryption, e-commerce transactions, e-gambling.  The nation's infrastucture and economics are internet dependent. it has a healthy economy with full employment.

Estonia's government is among the world's most internet interactive.  In tallinn, you can vote from your home via the Internet. If you choose, you can talk back to the head of the tax department. Most people have free Internet connection at home, but if you do not, it's pretty much free and ubiquitous. Government officials universally boast that they use the Internet to serve, not control. Estonia President Toomas Hendrik Ilves

[Tallinn President Toomas Ives in his office, October 2006. Photo by Shel.]

When I interviewed President Toomas Ilves, who performed bravely last week, standing up to the Russians, the former Columbia University professor madeclear that Internet technology was intended primarily for people to "take information and back opinion." Entrepreneurs seem to have remarkable access to  government officials. Skype COO Stem Tamkivi told me how he could call up any senior official in the country to discuss Skype's needs. His was not implying Skype had special clout, but was emphasizing people's access to government. Mart Laar, who served twice as prime minister, fantasized to me about his using the Internet to eliminate Parliament, letting citizens to argue and vote directly on critical issues once weekly.

I'm of the opinion the countries that do business with ecah other rarely invade each other.  Business people I know there see great potential and the recent fracas has to be more than a bit of a setback in that direction.

Skype officials would not speak to me for attribution on this subject, but conceded to me they had pretty much tapped Estonia's pool of technology talent and would love to import Russian and Ukrainian talent, an idea not embraced lovingly last october by government or fellow Estonians. "People here think we've had enough Russians in this country," I was told.

My friend Allan Martinson, founder of Martinson Trigon Venture Partners , A VC firm doing business in both the Baltic states Russia bases his strategy on area business synergies. Objective, in every conversation, I've had with him, he expressed fears the situation is worsening and are bringing in a new Cold War.

" Doing business always helps to understand the other. But I am afraid it will be increasingly difficult. We are already getting unpleasant signals... . Many things are put on hold to see how the situation evolves. I am afraid the Russian government will use administrative pressure to keep Estonian-related business out of Russia," he told me.

Connection,

[Estonian schoolgirl in uniform, sitting in 800-year-old doorway, online on a Mac. Photo by Shel.]

It seems to me, that like most conflicts, culture clash is at the core. Estonia is a bottom up country with an accessible government. Russia's is not.

Russian President Vladimir Putin, a former KGB operative has an apparent penchant for accelerating hostilities with the west whenever an important Russian election looms. He is not a bottom up guy. He seems to enjoy making his neighboring members of the former Soviet Union nervous with little reminders of what Russia is capabe of doing to them.

Estonians do not need reminding. It is less than 15 years since the Russians left.  The landmarks are still there.  The cultural quirks remains. Anyone over age 30 has an unpleasant personal story to tell about the occupation.

And that goes back to the statue, which until its recent relocation, served to remind Estonians, day-after-day that freedom and security are often delicate things that can easily be lost. They do not see the Russians as liberators from the Nazis, not for one minute.

In fact, Russia invaded Estonian for the first time in 1939, a full year before the Nazis pushed the Russians out. Stalin's Red Army was not screwing around.  They sent in 100,000 soldiers, one for every 10 Estonians.

When the Russians wrested conrol of Estonia back again in 1944, it was immediately clear it was an occupation built to last and it did for more than 50 years. Estonians recall it as a harsher occupation than the Nazis meted out. The Soviets assaulted the country's culture. In two raids executed on two separate nights, the Soviets gathered up a total of 100,000 Estonians, many of them the nation's brightest and boldest. Some were deported to Siberia or elsewhere in Russia. Others were just dragged into the woods and shot.

The Soviets then exported about 100,000 loyal Russians into Estonia to serve as occupation  gatekeepers, bureaucrats and, of course, "citizen observers. Russians still remain there, comprising the bulk of the country's 400,000 non-Estonian residents. There has been extremely little assimilation between cultures.

Sorry for the historic digression, but it's relevant to today and I am writing this because I think what is going on is more relevant than most people realize. Cyber hacking is one thing, but saber rattling is also starting to be heard--or maybe it's just old-fashioned bullying.

The vice chairman of the Russian parliament last week suggested Russia organize a major military campaign at its Estonian border.  Speaking happily on the record, he said some soldiers may "mistakenly" go into Estonia and destroy historic and cultural landmarks, then withdraw, "after which we will apologize, of course."  The Estonian Embassy in Moscow has been virtually under siege, surrounded by angry Russians, rumored to be getting paid to hurl rocks and epitaphs at the Embassy staff and their families.

In Estonia, the moving of the bronze Russian in Tallinn has led to unprecedented riots.  Shouting, "Russia! Russia!" looters have assaulted Estonian liquor stores and raided the racks of Gucci and Amani shops. There have been over 1,000 arrests and at least one death. No one is optimistic that the worst has already occurred.

Elsewhere in Russian news last week was a report of the Russians bulldozing yet another Soviet- statue into smithereens. Perhaps, little Estonia should have been more forceful than the polite relocation it had intended.


December 17, 2006

Loic tells his side of the story

Loic has posted a lengthy, eloquent passionate and reasoned response to his actions regarding his production decisions at the recent controversial  LeWeb3. He also seems to imply that  some of the criticism directed at him was because conferences about blogging per se are over and blogging insiders were pissed off about his going beyond the core topic, which he feels has become overworked.

Maybe so.  Maybe so.  But I sure wish he had presented this argument before the event not after. That way, people attending the event would have known what to expect.

On a personal level, I think I would have preferred the expanded agenda over the one originally planned. But the issue is setting expectations on what one will get for his or her money. For example, I enjoy both rock and symphony.

But if I went to a rock concert to discover the lead off group was a string octet playing Vivaldi's Four Seasons. I would be confused and disappointed.  As so many of Le Web 3 attendee seem to have felt.

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