Securing Democracy Dispatch

U.S. lawmakers push for more sanctions against Russia: Senators Lindsey Graham (R-SC) and Bob Menendez (D-NJ) announced their push for additional sanctions against Russia for its attempts to undermine democracies. The senators stated that “Vladimir Putin has made clear his intention to challenge American power, influence, and security interests at home and abroad… we will defend our nation and not waver in our rejection of his effort to erode western democracy as a strategic imperative for Russia’s future.” The proposed legislation includes sanctions on “Russian energy and financial sectors… oligarchs and parastatal entities… sovereign debt… [and] cyber actors;” reporting requirements to tighten sanctions implementation mandated by Countering America’s Adversaries Through Sanctions Act; and creates a State Department sanctions coordinator. Among other provisions, the bill would also create a “National Center to Respond to Russian Threats;” mandate Senate approval of a decision by the President to withdraw the U.S. from NATO; and aid European allies in countering Russian interference. Senators Chris Van Hollen (D-MD) and Pat Toomey (R-PA) have also backed sanctions against 12 Russian GRU operatives indicted by Special Counsel Robert Mueller for hacking Democratic Party computers in 2016. Senator Bob Corker (R-TN), Chairman of the Senate Foreign Relations Committee, has not yet signaled his support for another Russia sanctions bill. Following the Senate Foreign Relations Committee’s July 25 hearing on the Helsinki summit and the administration’s Russia policy with Secretary of State Mike Pompeo, more congressional hearings on Russia policy are scheduled for the coming weeks. (Senate Foreign Relations Committee, The Hill, Marco Rubio, Bloomberg News, Justice Department)

U.S. leadership grapples with election security as midterms approach: President Donald Trump chaired a meeting of the National Security Council to discuss the administration’s efforts to safeguard the upcoming midterm elections from Russian interference. According to The Washington Post’s Ellen Nakashima, the meeting covered current activities by federal agencies to help state and local election officials but did not include discussion of a coordinated strategy to prevent Russia from interfering in the elections. Senators Amy Klobuchar (D-MN) and Lindsey Graham introduced a bipartisan resolution “reaffirming Congressional support for our intelligence agencies and declaring that attacks on our elections by foreign adversaries will be met with swift and appropriate repercussions.” Sen. Klobuchar emphasized that, “passing this bipartisan resolution sends a clear message to Putin that we are united in our commitment.” Additionally, a group of Senators led by Senator Patrick Leahy (D-VT) introduced an amendment that would provide states with $250 million in aid to secure election systems as part of the 2019 spending bill that the Senate is considering in the coming days. Finally, in an interview, House Intelligence Committee Chairman Devin Nunes (R-Calif.) called for a ban on electronic voting systems, arguing that they are “really dangerous… and should not be used.” (The Washington Post, Senate.gov, Roll Call, The Hill)

Evidence reveals Russian cyber operations targeting the United States: The Wall Street Journal reported that hackers working for the Russian state-sponsored group known as Dragonfly or Energetic Bear had previously compromised the networks of U.S. utility companies, reaching a point where they could have caused major damage to U.S. power grids. An official from the Department of Homeland Security stated that the cyberattack began in the spring of 2016 and could still be ongoing. Experts fear the attack could eventually result in extensive damage to critical infrastructure and cause major blackouts. In response to the report, Senators Maria Cantwell (D-WA) and Lindsey Graham (R-SC) wrote a letter to President Trump calling for additional steps by the federal government to protect the U.S. energy grid from cyberattacks, specifically noting the Russian threat to U.S. energy infrastructure. The Daily Beast also reported that Russia’s GRU intelligence agency targeted Senator Claire McCaskill’s (D-MO) 2018 re-election campaign with a phishing attack in an attempt to steal passwords from staffers. According to a press release from McCaskill, the attack was “not successful.” This revelation came just a week after a Microsoft executive said at the Aspen Security Forum that three candidates in the midterm elections had already been targeted by phishing campaigns resembling the attacks on the Clinton campaign in 2016. (The Wall Street Journal, Cantwell, The Daily Beast, McCaskill, NBC News)

The 2019 NDAA includes China, Russia, and cyber provisions: The House passed its 2019 National Defense Authorization Act on July 26, a bill which contains a wide variety of cybersecurity, defense, and foreign policy-related measures. The NDAA maintains restrictions on cooperation between the United States and Russian militaries, funds a ballistic missile warhead seen as a deterrent against Russia, and creates an NSC post for countering foreign interference. However, in a significant concession to the administration, the bill would provide the president the authority to unilaterally waive sanctions from the 2017 Countering America’s Adversaries Through Sanctions Act (CAATSA) on “certain entities that still do business with Russia.” On China, the bill “prohibits any US government agency from using risky technology produced by Huawei or ZTE… and prohibits any entity doing business with the US Government from using Huawei or ZTE technology.” Among other China-related items, the legislation also calls for developing a comprehensive strategy to counter China’s worldwide influence activities, including “political influence, economic tools, cyber activities, global infrastructure and development projects, and military activities…” On cybersecurity, the NDAA establishes the United States’ “first cyber warfare policy, affirm[s] the authority of the Defense secretary to conduct clandestine military activities and operations in cyberspace, and authoriz[es] the president to direct U.S. Cyber Command” to counter U.S. adversaries. Moreover, the bill would require the Pentagon to inform Congress of hacks on government defense contractors, and establish a “Cyberspace Solarium Commission” to develop U.S. cyberdefense strategy. (House Armed Services Committee, CNN, The Washington Post, Politico)

Facebook tries to respond to increasing scrutiny amid financial troubles: Following two damaging weeks of negative press, congressional scrutiny, and a falling stock price, Facebook announced further steps meant to restore public confidence in its platform. The company suspended data firm Crimson Hexagon — which has over 20 contracts with the federal government — for violating Facebook’s data-aggregation and sharing policies. Following news of senior Facebook officer Alex Stamos’ critical exit memo, company officials said on July 24 that they were using artificial intelligence to fight disinformation and insisted that their processes were reducing the distribution of false content. On the same day, Facebook “signed a legally binding pledge” in response to a Washington state lawsuit, promising that advertisers will not discriminate by targeting ads to exclude people by race, religion, nationality, and other factors. Outside of the U.S., Facebook announced on July 25 that it had taken down “196 pages and 87 accounts in Brazil,” believed to be used by right-wing Brazilian activists in a coordinated disinformation campaign. Facebook’s stock took a major hit the same day, losing over 20% of its value after the company reported that its revenue growth is being overtaken by increased spending. Privacy and disinformation scandals are contributing factors to the stock decline, with some arguing that Facebook must do more to address its problems. On July 29, Senator Mark Warner (D-VA) recommended increased government action to enhance privacy laws and increase the accountability of social media platforms for cracking down on fake accounts and content. In September, Facebook executives will likely return to Capitol Hill to testify before the Senate Intelligence Committee on election interference. (USA Today, BuzzFeed News, Reuters, The Washington Post, BBC News, Axios)

Reports highlight challenges of fake news, foreign disinformation: A report by the Digital, Culture, Media and Sport Committee of the UK House of Commons branded fake news as a threat to the “very future of democracy,” recommending that social media companies be held accountable for posted content and their algorithms. Apart from fake news, MP Damian Collins, who chairs the committee, emphasized “the relentless targeting of people with hyper-partisan content” as a major challenge. The committee’s report also blamed Facebook for its “disingenuous answers” and secrecy, stating, “Time and again, Facebook chose to avoid answering our written and oral questions.” The report called for greater regulation of social media, a new tax on internet companies to fund increased oversight, expert assessment of accounts and sources, and disclosure of the funding of political ads. A report by the NYU’s Stern School similarly insisted that the government and private sector do more to counter disinformation, though it also cautioned against content regulation, saying that “such restrictions on content pose an immediate threat to the basic human right of free speech.” According to the report, platforms must develop Russian expertise, develop and use artificial intelligence to stop sophisticated disinformation, expand third-party fact-checking initiatives, ensure ad transparency, and aggressively fight deceptive content through algorithms. The report also called on government to improve information sharing, strengthen existing agencies while creating new ones, and increase Russia sanctions. (The New York Times, The Washington Post, NYU Stern Center for Business and Human Rights)

The UK hopes to crack down on money laundering with new shell company register: On July 23, the British Parliament introduced legislation to create the world’s first public register of the beneficial ownership of overseas shell companies. The legislation would require foreign companies that own property in the UK to disclose their ultimate ownership, a move that Business Minister Richard Harrington said will provide authorities the necessary information “to come down on criminals who launder their dirty money through the UK’s property market and to seize the proceeds of crime.” Under the proposed legislation, companies would not be permitted to sell or lease any property in Britain without first disclosing its beneficial owner; violators would face up to five years in prison and an unlimited fine. Companies would also have to register on demand, if requested, and failure to do so, or providing false information to the register, would garner up to a two-year prison sentence and an unlimited fine. (The Guardian, GOV.UK)

Western nations worry about Chinese economic influence: The Senate Subcommittee on East Asia, the Pacific, and International Cybersecurity Policy held a hearing on July 26 focusing on Chinese economic coercion. Witnesses testified on the numerous ways China employs predatory and coercive economic tactics to achieve geopolitical goals, including coercing foreign businessmen in Taiwan, the United States, and elsewhere to lobby for Chinese interests; cutting off trade to exert economic pressure on states; and giving predatory loans to developing nations, such as a loan to Sri Lanka that resulted in the island awarding a port to China. An article from The Daily Beast also detailed China’s practice of hiring former U.S. officials as personal lobbyists to boost Chinese influence in the United States. Chinese investment in the United States has plummeted this year, owning to increased scrutiny by the federal government; attempts by Beijing to curb its foreign investment; and even due to U.S. cities souring on Chinese deals, due to fiscal and national security concerns. Other countries are also taking measures to curb Chinese influence. In June, Australia passed laws aimed at restricting foreign interference in their domestic politics that were clearly aimed at China. And the U.K. is considering passing laws to restrict foreign takeovers in sensitive industries in response to Chinese activities, a move that resembles efforts in France, Germany, the United States, and Australia. (Senate Committee on Foreign Relations, The Daily Beast, Wall Street Journal, Reuters)

Congress considers ways to address federal cybersecurity risks: The House Subcommittee on Infrastructure and Cybersecurity held a hearing on July 25 on federal cybersecurity, where witnesses and members discussed current vulnerabilities and potential remedies. Witnesses emphasized the importance of accountability for agency leaders; prioritizing protection of the most important assets within agencies; and considering all cybersecurity risks – including natural disasters, human error, and cyberattacks. The Government Accountability Office released a cybersecurity report on the same day that identified major challenges and critical actions the federal government must take to address them. These recommendations include developing a comprehensive cybersecurity strategy, protecting critical infrastructure, developing a cybersecurity workforce, and improving credential protection. (House Committee on Homeland Security, Government Accountability Office)

On August 1, ASD Director Laura Rosenberger will testify before the Senate Select Committee on Intelligence about how foreign intelligence agencies conduct influence campaigns in the United States through various social media platforms. Other panelists include Oxford Internet Institute Director Philip Howard, and Renee DiResta, director of research at New Knowledge. You can watch the hearing here. 

Laura Rosenberger joined Loren DeJonge Schulman, Kori Schake, and Ed Luce on the Deep State Radio’s podcast to discuss the Helsinki Summit, President Trump’s decision to invite President Putin to the White House, and election security ahead of the midterms. Rosenberger compared the U.S. reaction to Russian interference to leaving the door open after a house has been robbed.

ASD’s Clint Watts joined the Wbur podcast to discuss election interference. Watts addressed Russia’s continued interference in American elections, the Kremlin’s goals and intentions, and noted the different ways Russia pursues interference, beyond cyber-attacks and disinformation. He explained: “It’s not just to win an election … It is to demoralize, subvert the U.S. population and have an erosion of democratic institutions, and not be sure what to believe, what is fact or fiction. And we’ve seen that play out in a really devastating way over the last week and really over the last year.”

Accounts tracked by the Hamilton 68 dashboard focused on a variety of issues last week, from domestic U.S. politics to the war in Syria. Early in the week, chatter on the dashboard centered heavily on the White Helmets, with pro-Kremlin accounts seizing on the Kremlin’s false narratives decrying the group as criminals and terrorists. In the domestic sphere, a strong theme in the URLs shared on the dashboard last week was criticism of the Obama administration for its handling of Russian interference and the promotion of inaccurate articles intended to undermine the ongoing investigation by Special Counsel Mueller. Another major issue shared on the dashboard surrounded the “shadow banning” of prominent conservatives on Twitter. Seizing on a report by Vice News that investigated a failure in Twitter’s search algorithm, pro-Kremlin accounts embraced the controversy to attack Twitter and decry bias against conservatives by social media platforms.

“Election security is national security. With only 103 days until the next election, it is more important than ever that the United States acknowledges Russia’s cyber-attacks on our democracy and takes all possible steps to secure our future elections.”

–Senator Amy Klobuchar, (D-MN), July 26, 2018

“The Russians are trying to interfere with everyone’s election, and that’s the part that we lose track of. To them, sowing chaos and sowing uncertainty within our democracy is their key goal.”

–Senator James Lankford (R-OK), July 29, 2018

The Kremlin continues to spew disinformation about Syrian rescue workers to help cover up war crimes. Following an Israeli mission to rescue members of the White Helmets, a Syrian volunteer rescue organization that has helped expose the Assad regime’s chemical weapons attacks on Syrian civilians, from southern Syria this week, Kremlin state-controlled media continued their long-standing smear campaign against the group. Russian Foreign Ministry Spokesperson Maria Zakharova was quoted describing the White Helmets as “criminals,” while outlets like RT published Assad regime rhetoric labeling the members as “terrorists.” One RT journalist likened the Israeli rescue of the aid workers to the resettlement of Nazi scientists following World War 2. (BBC News)

The views expressed in GMF publications and commentary are the views of the author alone.