Arrests for Export Dual Use Violations Announced

arrests for export dual use violations
arrests for export dual use violations

The U.S. Department of Justice announced arrests for export dual use violations of Chong Sik Yu, and Yunseo Lee.  These two individuals are executives of America Tecma Inc..  The charges involve exporting electronic components with military applications to Hong Kong and China.  They are also charged with conspiracy to commit wire fraud, bank fraud, and money laundering. 

Efforts to Evade U.S. Export Controls

The arrests for export dual use violations occurred August 6, 2020.  Evidence including emails indicate that the defendants conspired with others to ship what they knew to be export-controlled items to Hong Kong and China.  These items included electronics components which are export-controlled under the Commerce Control List (CCL).  Yu and Lee allegedly sought to evade law enforcement by, transshipping packages through South Korea, and by using a separate company to send shipments to Hong Kong.

U.S Committed to Strict Enforcement of Export Law

Assistant Attorney General for National Security John C. Demers was quoted as saying “The Department’s fight against illegal technology transfer to China is no more critical than in areas like those involved in this case — controlled items used in missile and nuclear technology.  We will do everything in our power to disrupt illegal exports like these that jeopardize our national security.  Together with the Commerce Department and all of our law enforcement partners, we will continue to protect our national security by preventing dual-use technologies from being sent abroad without the required licenses.” 

Dual Use and Export Administration Regulations

Export Administration Regulations (EAR) are administered by the Bureau of Industry and Security (BIS).  Items deemed “dual use” (applicable for military and commercial end use), are classified with an Export Control Classification Number (ECCN).  Because of this export of these items are controlled.  As a result, authorization to export these items is based on the export control classification, where it is going, who the end users are, and what the end use of the item will be.

CVG Strategy Export Control Expertise

CVG Strategy export control experts can help your organization establish effective export compliance programs.  We have assisted businesses with EAR and International Traffic in Arms (ITAR) for over a decade.  We can assist with export control classifications.  Our ITAR training provides interesting and engaging education that will keep your team up to date on the latest regulations. 

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Russian Cyber Espionage Malware

Russian Cyber Espionage Malware
Russian Cyber Espionage Malware

The National Security Agency and the Department of Defense have issued a warning about Russian cyber espionage malware known as Drovorub.  This malware provides file download and upload capabilities to external actors when deployed on a victim Linux system.  It utilizes a number of means of concealing itself once implanted and is resilient to rebooting.  Drovorub is proprietary malware developed for use by the Russian General Staff Main Intelligence Directorate (GRU).

Recommended Mitigations

To mitigate Russian cyber espionage malware The NSA has made the following recommendations:

  • System administrators should continually check for and run the latest version of vendor-supplied software for their computer systems.  This should include updating to Linux Kernel 3.7 or later in order to take full advantage of kernel signing enforcement. 
  • System owners are advised to configure systems to load only modules with a valid digital signature. 
  • UEFI Secure Boot should be activated to ensure that only signed kernel modules can be loaded.

Nation State Sponsored Cyber Espionage

China has been in the spotlight of late on the subject of state sponsored cyber attacks.  This attention is well deserved.  China has been responsible for more than 90 percent of cyber espionage in the United States.  Furthermore this activity has increased since the beginning of 2020 as tensions in trade have ramped up between the two countries.  China, however is not the only player in this game.  Russia, North Korea, and Iran are major players as well.

Russia and China has both targeted organizations involved with corona virus vaccine development in the United, States, United Kingdom, and Canada.  This activity is widely believed to be an effort to steal intellectual properties and disrupt organizations’ activities.  Of course the medical community is not the only sector at threat.  Commercial, governmental, and defense related cyber espionage is growing rapidly.  This results in losses in the trillions of dollars annually. 

CVG Strategy

CVG Strategy provides cybersecurity solutions for businesses.  We can assist in establishing Information Security Management Systems (ISMS) that meet your organization’s requirements.  Our experts in ISO 27001 and NIST 800-171 provide effective consultant services.  We can also help your with CMMC CertificationContact Us to see how we can help.