Ukraine war causes US to step up security probe of software maker Kaspersky

Kremlin could use antivirus software to steal sensitive information from American computers

The US is stepping up an investigation into Russian software company Kaspersky amid heightened fears of cyber attacks from Moscow. Reuters

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US President Joe Biden's administration has stepped up a national security probe into Russia's AO Kaspersky Lab antivirus software amid heightened fears of Russian cyber attacks after Moscow invaded Ukraine, three people familiar with the matter told Reuters.

The case was referred to the Commerce Department by the Department of Justice last year, a fourth person said, but little progress was made until a White House intervention urged them to move forward in March, the three sources said.

At issue is the chance that the Kremlin could use the antivirus software to steal sensitive information from American computers or tamper with them as tension escalates between Moscow and the West.

Access to the networks of federal contractors and operators of critical US infrastructure, such as power grids, are considered particularly concerning, the three people said.

US regulators have already banned federal government use of Kaspersky software and could ultimately force the company to take measures to reduce risks posed by its products or prohibit Americans from using them altogether.

The probe shows the administration is digging deep into its toolkit to hit Moscow with even its most obscure authorities in a bid to protect US citizens and corporations from Russian cyber attacks.

Other regulatory powers stop short of allowing the government to block private sector use of software made by the company based in Moscow, long seen by US officials as a serious threat to national security.

The- US departments of Commerce and Justice, as well as Kaspersky, declined to comment. The company has for years denied wrongdoing or any secret partnership with Russian intelligence.

The enhanced probe is being carried out using broad new powers created by the Donald Trump administration that allow the Commerce Department to ban or restrict transactions between US companies and internet, telecoms and tech companies from “foreign adversary” nations including Russia and China.

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For Kaspersky, the Commerce Department could use the authorities to ban its use, the purchase of its software by US citizens or prohibit the download of updates via a regulation in The Federal Register.

The tools are largely untested. Mr Trump used them to try to bar Americans from using Chinese social media platforms TikTok and WeChat, but federal courts halted such moves.

A top Justice Department official said last year that the agency was examining dozens of Russian companies, including “a known connection between a particular company and the Russian intelligence services”, to see whether they threatened the US supply chain.

The department could refer some of the cases to Commerce for further action, then-assistant attorney general John Demers said at the time.

Reuters could not learn whether the companies under review included Kaspersky, which made an estimated $95.3 million in US revenue in 2020, market research firm Gartner said.

It was not known whether that figure included Kaspersky products sold by third parties under different branding, a practice which generates confusion about software's origin, US national security officials say.

In 2017, the Department of Homeland Security banned Kaspersky's flagship antivirus product from federal networks, claiming ties to Russia's intelligence services and noting a law that lets its intelligence agencies compel assistance from Kaspersky and intercept communications transiting Russian networks.