Syrian rebels hunt for snipers after attacking the municipality building in the city centre of Selehattin, near Aleppo, on July 23, 2012. Bulent Kilic/AFP Photo
Syrian rebels hunt for snipers after attacking the municipality building in the city centre of Selehattin, near Aleppo, on July 23, 2012. Bulent Kilic/AFP Photo
Syrian rebels hunt for snipers after attacking the municipality building in the city centre of Selehattin, near Aleppo, on July 23, 2012. Bulent Kilic/AFP Photo
Syrian rebels hunt for snipers after attacking the municipality building in the city centre of Selehattin, near Aleppo, on July 23, 2012. Bulent Kilic/AFP Photo

How ‘honey trap’ hackers stole Syrian rebel war plans


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BEIRUT // Hackers targeted Syrian opposition members with online “honey traps,” posing as female supporters to steal battle plans and the identity of defectors.

A report released on Monday by US cybersecurity firm FireEye describes how the hacking operations in late 2013 and early 2014 targeted Syrian opposition fighters, media activists and humanitarian aid workers.

The company said it was unclear whether the information had been passed onto the Syrian government, and who the hackers were.

But the hacked material included a detailed opposition military plan to recapture the town of Khirbet Ghazaleh, strategically located in southern Daraa province, in 2013.

“The hackers stole a cache of critical documents and Skype conversations revealing the Syrian opposition’s strategy, tactical battle plans, supply needs, and troves of personal information and chat sessions,” the report said.

The hacking provided “actionable military intelligence for an immediate battlefield advantage” in the case of the planned Khirbet Ghazaleh attack, capturing “the type of insight that can thwart a vital supply route, reveal a planned ambush and identify and track key individuals.”

Despite the high-tech tools used in the attack, the hackers also relied on a well-worn tactic: the “honey trap.”

Targets were contacted on the online phone and chat service Skype by hackers posing as pro-opposition women.

They would ask the target whether they were on a smartphone or computer, apparently in a bid to tailor their attacks.

Then the hackers would send the target a photo of themselves loaded with malware that penetrated their personal files and stole information.

The method was particularly fruitful because Syrian opposition members were often sharing computers, meaning one machine yielded information from multiple victims.

Most of the data stolen was created between May 2013 and December 2013, but some of the stolen Skype chat logs went back to 2012 and others included information from as recently as January 2014.

The hackers also used other tactics, including creating fake social media accounts and Syrian opposition websites that encouraged visitors to click on links that would infect their computers.

In May 2013, regime troops stormed Khirbet Ghazaleh which was rebel-held at the time and being used to block the road between Damascus and Daraa.

The report was unable to identify where the hackers were based, or who they might have reported to.

But it noted that the hackers’ servers were based outside of Syria and they used tools and tactics that were different from other Syrian hackers.

Syria’s conflict has involved other documented cases of cyberwarfare, by both pro-regime and opposition activists.

Some of the most high-profile include attacks by the so-called Syrian Electronic Army, a group of pro-government hackers who have attacked websites and social media accounts belonging to media outlets and politicians.

* Agence France-Presse

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How Tesla’s price correction has hit fund managers

Investing in disruptive technology can be a bumpy ride, as investors in Tesla were reminded on Friday, when its stock dropped 7.5 per cent in early trading to $575.

It recovered slightly but still ended the week 15 per cent lower and is down a third from its all-time high of $883 on January 26. The electric car maker’s market cap fell from $834 billion to about $567bn in that time, a drop of an astonishing $267bn, and a blow for those who bought Tesla stock late.

The collapse also hit fund managers that have gone big on Tesla, notably the UK-based Scottish Mortgage Investment Trust and Cathie Wood’s ARK Innovation ETF.

Tesla is the top holding in both funds, making up a hefty 10 per cent of total assets under management. Both funds have fallen by a quarter in the past month.

Matt Weller, global head of market research at GAIN Capital, recently warned that Tesla founder Elon Musk had “flown a bit too close to the sun”, after getting carried away by investing $1.5bn of the company’s money in Bitcoin.

He also predicted Tesla’s sales could struggle as traditional auto manufacturers ramp up electric car production, destroying its first mover advantage.

AJ Bell’s Russ Mould warns that many investors buy tech stocks when earnings forecasts are rising, almost regardless of valuation. “When it works, it really works. But when it goes wrong, elevated valuations leave little or no downside protection.”

A Tesla correction was probably baked in after last year’s astonishing share price surge, and many investors will see this as an opportunity to load up at a reduced price.

Dramatic swings are to be expected when investing in disruptive technology, as Ms Wood at ARK makes clear.

Every week, she sends subscribers a commentary listing “stocks in our strategies that have appreciated or dropped more than 15 per cent in a day” during the week.

Her latest commentary, issued on Friday, showed seven stocks displaying extreme volatility, led by ExOne, a leader in binder jetting 3D printing technology. It jumped 24 per cent, boosted by news that fellow 3D printing specialist Stratasys had beaten fourth-quarter revenues and earnings expectations, seen as good news for the sector.

By contrast, computational drug and material discovery company Schrödinger fell 27 per cent after quarterly and full-year results showed its core software sales and drug development pipeline slowing.

Despite that setback, Ms Wood remains positive, arguing that its “medicinal chemistry platform offers a powerful and unique view into chemical space”.

In her weekly video view, she remains bullish, stating that: “We are on the right side of change, and disruptive innovation is going to deliver exponential growth trajectories for many of our companies, in fact, most of them.”

Ms Wood remains committed to Tesla as she expects global electric car sales to compound at an average annual rate of 82 per cent for the next five years.

She said these are so “enormous that some people find them unbelievable”, and argues that this scepticism, especially among institutional investors, “festers” and creates a great opportunity for ARK.

Only you can decide whether you are a believer or a festering sceptic. If it’s the former, then buckle up.

COMPANY PROFILE
Name: ARDH Collective
Based: Dubai
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Sector: Sustainability
Total funding: Self funded
Number of employees: 4

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