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Exclusive-Ukraine war spurs U.S. to ramp up security probe of software maker Kaspersky -Breaking

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© Reuters. FILE PHOTO : Russian Kaspersky stands next to people during the GSMA 2022 Mobile World Congress (MWC) in Barcelona, Spain on March 2, 2022. REUTERS/ Albert Gea

By Alexandra Alper

WASHINGTON (Reuters] – In response to increased Russian cyberattack fears following the invasion of Ukraine, the Biden administration launched a national investigation into Russia’s AO Kaspersky lab antivirus software.

According to a fourth person, although the case was referred by the Department of Justice to Commerce Department last year, Commerce did not make any progress until March when the White House and other officials from the administration urged Commerce to continue.

There is a risk that the Kremlin may use anti-virus software which gives it privileged access to computer systems to steal information or alter American computers as tensions rise between Moscow, the West, and Moscow.

The three men said that access to networks of federal contractors or operators of vital U.S infrastructure like power grids is particularly worrying.

Kaspersky software is already prohibited by U.S. regulators. They could force Kaspersky to implement measures to lower the risks or even ban Americans entirely from using it.

This probe is unprecedented and shows that the Obama administration has delved deep into its toolbox to strike Moscow with all its obscure authorities, in an effort to defend U.S. citizens, corporations, from Russian cyberattacks.

Emily Kilcrease, an ex-assistant U.S. trade representative, stated that the authorities were “really our only tool to address the threat (posed Kaspersky), on an economy wide commercial basis, due to our generally open marketplace.”

The government cannot block the private sector from using software created by Moscow-based company. This was long considered by U.S. officials to be a grave threat to national security.

Kaspersky and the Justice departments declined comment. For years, the company denied any wrongdoing and has never been involved in secret partnerships with Russian intelligence.

AUTHORITIES TARGET ‘FOREIGN ADVERSARIES’

The Commerce Department has broad new powers to restrict or ban transactions between U.S. businesses and companies operating in telecom, tech and internet services from countries that are “foreign enemies”, including Russia and China.

Commerce can use its authority to prohibit its use and the purchase by U.S citizens of the software, as well as the prohibition of the downloading of any updates through a Federal Register regulation.

These tools have not been tested. They were used by former President Donald Trump to block Americans from accessing Chinese social media platforms TikTok or WeChat. However, federal courts stopped the move.

One top Justice Department official claimed last year that agency was looking into dozens Russian companies. This included “a connection between a specific company and Russian intelligence services” in order to assess whether the U.S. supply-chain security. According to John Demers, the then-Assistant attorney general of Justice Departments, some cases could be referred to Commerce for further investigation.

Reuters was unable to determine whether Kaspersky had been included among the reviewed companies. The company made an estimate of $95.3million in U.S. Revenue in 2020, according to market research firm Market Research. Gartner Nearly 15% of the company’s global revenues came from (NYSE:) Inc.

The figure did not include Kaspersky products which were sold to third parties using different brands. According to U.S. officials, this practice can cause confusion regarding the software’s origin.

Kaspersky, Kaspersky’s anti-virus product was removed from federal networks by the Department of Homeland Security in 2017. They also allege ties with Russian intelligence.

Since Russia invaded Ukraine on February 24, Moscow calls it a “special military operations.” This has made the perceived threat more urgent.

German authorities warned in March that Moscow-based Russian companies could be coerced into participating in cyberattacks. Russian government agents may also use the technology of the company clandestinely to launch attacks without the Russian government’s knowledge.

Kaspersky stated in a statement that the company was privately managed and had no connections to Russia’s government. He also described the German warning as political motivated.

Reuters reported that U.S. officials privately warned some American businesses that Moscow might use Kaspersky’s software to harm them after Russia invaded Ukraine.

According to the Wall Street Journal, last month the White House requested that the Treasury Department prepare sanctions against the company. Some officials refused, fearing it might increase Russian cyberattacks.

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